Weakening domestic demand and falling steel futures has resulted to decline in Chinese steel prices along with raw material prices.This in turn leads to falling export offers of long and flat products in the global market. Besides this,National day holiday is scheduled in 1 Oct’17 due to which Chinese steel mills will remain shut for a week resulting in limited trade activities.
Iron ore trading activities remain thin– Benchmark index in China for Fe 62% fines fell below USD 63/MT, CFR China amid thin buying interest. Spot lump premium fell considerably to USD 0.36/MT amid less lump usage and pellet premium moved up to USD 50/DMT, CFR China.
Coking coal prices fall sharply by USD 17/MT W-o-W -Coking Coal prices continue to remain on downtrend owing to bearish demand sentiments in China. Offers for the Premium HCC have declined to around USD 189.50/MT FoB Australia against last week’s assessment of USD 208.5/MT, FoB.
Chinese domestic billet prices observe decline – Chinese domestic billet prices fell further this week. Domestic billet prices in northern China were recorded yesterday at RMB 3,530/MT (ex-works) against RMB 3,700/MT (ex-works) a week ago. Prices fell on dull demand. Falling domestic billet prices in China may give some room for exports. Assessment for Chinese billet export stood at around USD 500/MT, FoB.
Chinese HRC export offers plunged by USD 15-20/MT amid softening domestic market- Nation’s HRC export offers registered the decline of USD 15-20/MT W-o-W basis. Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 560-585/MT, FoB China.CRC export offers are assessed at USD 610-615/MT on FoB basis.
Chinese Re-bar export offers started tumbling over domestic losses -Chinese re-bar export offers registered the fall this week by USD 15-20/MT and are assessed in range of USD 540-565/MT on FoB basis.Last week the offers was in range of USD 560-575/MT on FoB basis.Major mills in China has lowered re-bar export offers in order to generate more sales ahead of National day holiday which is scheduled in the first week of Oct’17.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 63 | 66 | 79 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) |
RMB | 660 | 700 | 730 |
| Met Coke, 64%, FoB China | USD | 372 | 375 | 319 |
| Chinese Domestic Billet, ex-works |
RMB | 3,530 | 3,700 | 3,700 |
| Billet 150*150 mm, FoB China |
USD | 503 | 530 | 525 |
| HRC, FoB China | USD | 560 | 580 | 565 |
| CRC, FoB China | USD | 610 | 615 | 605 |
| Rebar, FoB China | USD | 550 | 560 | – |
Prices in USD/MT
Source-SteelMint Research
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