Chinese Steel Market Highlights: Week 43

Week 43 witnessed sharp hike in spot pellet premium amid increased Chinese demand. Iron ore prices increased towards the end of the week. Coking coal prices observed decline. Chinese HRC export offers moved up although limited trades remained limited from overseas buyers.

Seaborne iron ore prices moved up towards the week end – Amid pick up in trade activities and improved restocking activities. Benchmark index in China for Fe 62% fines increased towards the end of the week and closed at USD 62-63/MT, CFR China. Spot lump premium fell further to USD 0.25/MT. However pellet premium moved up to USD 54.7/DMT, CFR China owing to strong demand from Chinese steel mills.

Coking coal prices decline amid falling Chinese demand – 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 179.5/MT FoB Australia down by USD 2.25 against previous week’s assessment.

Chinese domestic billet prices increased marginally – Chinese domestic billet prices increased marginally last week. Domestic billet prices in northern China were recorded at RMB 3,620/MT (ex-works) in beginning of week increased to RMB 3,660/MT by the end of the week. However market participants mentioned demand still continues to remain on the lower side. No deals for billet exports were reported from China last week.

Chinese HRC export offers increase, trades remain limited- Nation’s HRC export offers increased last week. HRC commercial grade ASTM A36 export offers were prevailing in the range of USD 565-570/MT, FoB China.CRC export offers were assessed at USD 600-610/MT on FoB basis.

Chinese Rebar export offers fell thorough out the week however domestic demand remained strong and witnessed recovery.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research