This week Chinese steel market is consumed with mixed sentiments. Chinese HRC and re-bar export offers showed the downward trend amid weakening domestic market.Chinese iron ore prices remained range bound against previous week and coking coal prices decline amid softening coking coal demand from China.
Seaborne iron ore prices remained range bound this week – Seaborne iron ore prices in China remained range bound this week and kept hovering between USD 59-60/MT, CFR China amid limited trade activities. Spot lump premium witnessed marginal correction and stood at USD 0.20/MT. However pellet premium moved up slightly to USD 59/DMT, CFR China owing to strong demand from Chinese steel mills.
Coking coal prices decline amid softening import demand from China- Demand for coking coal in china softens owing to production cuts happening in China in order to prevent pollution.Some mines in the Shanxi region in China have resumed functioning, leading to domestic price cuts by around Yuan 50-150/MT, with the Premium HCC varieties are being sold at around Yuan 1,450-1,570/MT.
In Australia, spot prices of Coking Coal witness the fall, mainly due to the softening import demand from Chinese steel makers.Currently Premium HCC prices was assessed at around USD 179/MT FoB Australia,down by USD 17/MT against previous week.
Domestic billet prices in China weakened towards the week end – Domestic billet prices in China have weakened after witnessing hike towards beginning of the week. The latest offers are heard around RMB 3,640/MT (ex-works, including VAT) in northern China.
Chinese HRC export offers dropped amid weak purchases– Nation’s HRC export offers have started falling amid dull buying.Overseas buyers hesitate to make any bookings as Chinese market has become uncertain and volatile.Currently HRC commercial grade ASTM A36 export offers were prevailing in the range of USD 540-545/MT FoB China.Major steelmakers are ready to accept the bookings in the range of USD 550-555/MT FoB basis.CRC export offers was assessed at USD 585-595/MT on FoB basis
Chinese Rebar export down marginally – Chinese Rebar export offers down marginally and are heard in the range of USD 525.75/MT.However, construction activity from South East Asia may push demand for Chinese re-bar in global market.Market sources also mentioned that if Chinese domestic prices sustained ,export prices are expected to rise by USD 5/MT in near term.
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 | 60 | 60 | 62 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) |
RMB | 665 | 670 | 660 |
| Met Coke, 64%, FoB China | USD | 326 | 342 | 372 |
| Chinese Domestic Billet, ex-works |
RMB | 3,640 | 3,740 | 3,480 |
| Billet 150*150 mm, FoB China |
USD | 507 | 507 | 505 |
| HRC, FoB China | USD | 545 | 550 | 560 |
| CRC, FoB China | USD | 585-595 | 600-610 | 615 |
| Rebar, FoB China | USD | 525 | 528 | – |
Quantity in USD/MT
Source: SteelMint Research
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