This week Chinese steel market remained optimistic as the domestic prices started to rebound but towards the weekend prices started moving downwards.Chinese flat steel and re-bar export offers showed marginal rise.Coking coal prices also remained on the higher side owing to limited availability of spot cargoes in Australia. Major Chinese steel mills – Baosteel and Wuhan Steel rolled flat steel prices for December deliveries. Iron ore fines benchmark index kept hovering in the range of USD 62-63.5/MT, CFR China.
Chinese crude steel production increased further in Oct’17 and was recorded at 71.83 MnT.
Seaborne iron ore prices remained range-bound– Seaborne iron ore prices in China remained on the higher side and kept hovering in the range of USD 62-63.5/MT, CFR China for Fe 62% fines. Spot lump premium witnessed marginal decrease and stood at USD 0.195/MT. Pellet premium declined to USD 58/DMT, CFR China. Iron ore inventory at Chinese major ports stood at 138.48 MnT, up by 0.4% against last week.
Domestic iron ore prices in China remained stable on weekly premises. According to National Bureau of Statistics, China produced 120.7 MnT crude ROM (Run-of-mine) up around 1% M-o-M in Oct’17 against 119.13 MnT in Sept’17.
Coking coal prices rose amid limited availability of spot cargoes-Coking coal prices in Australia showed the upward trend as the delays in the Dalrymple Bay Coal Terminal (DBCT) results to hike in coking coal prices.Also spot cargoes availability is also decreasing and demand from non Chinese buyers improves, pushing the prices of coking coal on higher side.
Currently Premium HCC prices was assessed at around USD 189.50/MT FoB Australia, moved up by USD 7.75/MT against USD 181.50/MT in previous week.
Chinese billet export offers surged by USD 15/MT over higher domestic prices – Chinese billet export offers are assessed around USD 525/MT,FoB China against the previous offers which was around USD 510-515/MT,FoB basis. Domestic billet prices in China touched the levels of around RMB 3,870/MT (ex-works, including VAT) in northern China.However after yesterday’s prices fall by RMB 30/MT prices was assessed at RMB 3,830/MT.
Chinese HRC export offers rose by USD 5-10/MT W-o-W- Major Chinese steel mills – Baosteel and Wuhan Steel rolled flat steel prices for December deliveries. Chinese HRC export offers have started to rebound by USD 5-10/MT W-o-W amid gains in domestic market.In addition to this uptrend in billet prices brings the positive sentiments for HRC prices in domestic market.
Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 550-560/MT, FoB China.
Major mills in China are offering in the range of USD 560/MT FoB basis.However traders in domestic market are concluding the deal in range of USD 550/MT,FoB basis.
Chinese Rebar export offers rose marginally – Chinese Rebar export offers witness the rise by USD 5/MT W-o-W basis and are heard in the range of USD 530-540/MT FoB China against last assessment which was at USD 525-530/MT.However no bookings have been made in the prevailing prices.Also Indian re-bar was offered in the range of USD 510-515/MT CFR Hong Kong.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices per MT |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 63 | 63 | 63 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) |
RMB | 665 | 665 | 660 |
| Met Coke, 64%, FoB China | USD | 312 | 318 | 353 |
| Chinese Domestic Billet, ex-works |
RMB | 3,830 | 3,720 | 3,570 |
| Billet 150*150 mm, FoB China |
USD | 525 | 510 | 510 |
| HRC, FoB China | USD | 560 | 550 | 570 |
| CRC, FoB China | USD | 585 | 590 | 605 |
| Rebar, FoB China | USD | 530 | 525 | – |
Source: SteelMint Research
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