Chinese Steel Market Highlights-Week 39

This week Chinese steel market witnessed the decline in domestic steel prices following decline in steel futures and thin trading among overseas buyers.Strict government measures in China to cut excess steel capacities in order to curb pollution is leading to softening of sentiments in domestic market. Another factor which affect China’s domestic market is National Congress of the Communist Party in China which is scheduled on 13 Oct’17. Amid uncertainties Chinese steelmakers have halted the coking coal imports and iron ore prices have also remained on lower side.

Iron ore prices in China decline sharply amid fall in futures– Benchmark index in China for Fe 62% fines closed at USD 64/MT, CFR China by the weekend, drop by 11% W-o-W. Iron ore futures have come down by 4% since beginning of this week. Spot lump premium fell marginallyto USD 0.425/MT and pellet premium moved up sharply to USD 49/DMT, CFR China. Iron ore inventory at Chinese major ports fell by 1 MnT W-o-W to 130.85 MnT.

Coking Coal Prices decrease marginally amid uncertainty in Chinese market– Australian coking coal prices have decline marginally amid volatility in China’s domestic market. Chinese government has asked the mills in domestic market to cut the steel capacity in order to control air pollution.This in turn resulted to halting of imports by Chinese steelmakers for short span of time.

The latest offer for the Premium HCC moved down further by USD 2.5/MT and are assessed at USD 206.50/MT FoB Australia against USD 208.75/MT,FoB compared with previous week.

Chinese domestic billet prices observe decline – Chinese domestic billet prices fell towards the weekend and closed at RMB 3,550/MT (ex-works, icluding VAT). Prices fell on dull demand. However no billet export offers were heard from Chinese steel mills but is expected to be around USD 520/MT, FoB China.

HRC export offers rise marginally by USD 5/MT– Nation’s HRC export offers witnessed marginal rise despite the prices started to tumble in the domestic market.Chinese HRC export offers rose sharply by USD 5/MT, W-o-W basis amid softening of prices in the country’s domestic market.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 585-600/MT, FoB China.CRC export offers are assessed at USD 615-620/MT on FoB basis.

Chinese Re-bar export offers remained stable -Chinese re-bar export offers remained steady this week and are assessed in range of USD 560-575/MT,FoB basis.Major re-bar mills in China have lowered their export offers by USD 5/MT are offering in range of USD 570-575/MT,FoB basis.

Steel Raw Material & Finished Steel Prices in China

Prices in USD/MT
Source-SteelMint Research