Chinese Steel Market Highlights- Week 48

This week Chinese steel market remained optimistic.Flat steel export offers showed marginal rise.Iron ore prices also surged sharply amid strong iron ore and steel futures. Iron ore fines benchmark index increased by about USD 4/MT, CFR China.Coking coal prices also showed uptrend over tight supply and positive demand from non-Chinese buyers.However re-bar export offers decline slightly.

Seaborne iron ore prices increased sharply– Seaborne iron ore prices in China increased amid hike in iron and steel futures. Benchmark index moved up by USD 4-5/MT W-o-W. Spot lump premium fell amid softening demand in seaborne lump market and increased stock of lump at Chinese major ports. Lump premium stood at USD 0.18/MT. Pellet premium declined to USD 53.5/DMT, CFR China as Chinese steel mills were heard to have reduced pellet usage.

Iron ore inventory at Chinese major ports have further increased this week by 2.04 MnT to 140.52 MnT, given that a large proportion of it is low-grade.

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 increases further amid tight supply –Coking coal prices in Australia increased further over tight supply and optimistic demand from non Chinese steel buyers.Since the delays in the Dalrymple Bay Coal Terminal (DBCT) lead to insufficient supply which in turn affects the prices of coking coal in overseas market.

Currently Premium HCC prices was assessed at around USD 194/MT FoB Australia, moved up by USD 4.75/MT against USD 189.50/MT in previous week.

Chinese billet export offers moved up by USD 10 /MT amid rising domestic prices – Chinese billet export offers are assessed around USD 535/MT,FoB China against the previous offers which was around USD 525/MT,FoB basis. Domestic billet prices in China have reached to RMB 3,850/MT (ex-works, including VAT) in northern China since the prices in the beginning of the week was assessed at RMB 3,830/MT (ex-works, including VAT).

Chinese HRC export moved up marginally over domestic gains- Nation’s HRC export offers witnessed rise of USD 5-10/MT as the prices started to move up in the domestic market.Higher domestic prices resulted in increasing HRC export offers in China.
In the beginning of the week HRC commercial grade ASTM A36 export offers are heard at USD 555-560/MT, FoB China but by the end of the week the offers came down at USD 550-560/MT,Fob basis.

Meanwhile prices in the domestic market are heard at RMB 4,100-4,130/MT (ex-works),D-o-D basis

Chinese Rebar export offers decline over weaker re-bar future – Chinese Rebar export offers moved down marginally by USD 3-5/MT W-o-W basis and are heard in the range of USD 535-540/MT FoB China against last assessment which was at USD 540/MT,Fob basis . Chinese mills are offering around USD 555/MT FoB basis however no bookings have been made in the prevailing prices.Thus mills are focusing much on domestic market over weaker booking in global market

Steel Raw Material & Finished Steel Prices in China

Source: SteelMint Research