Chinese Steel Market Highlights – Week 7, 2018

This week Chinese steel market remained steady and mute as the major steelmakers withdrew export offers ahead of Lunar New year holidays. Steel market is expected to remain silent in terms of trade activities as they are going for official holidays from 15th Feb to 21st Feb.

Seaborne iron ore prices moved up amid restocking by mills after they return from holidays.Domestic steel prices also remain largely stable. HRC and rebar export offers remain unchanged.However coking coal prices remain firm amid increased buying from Chinese mills before holidays.

Seaborne iron ore prices move up, lump demand remains firm – Iron ore fines (Fe 62%) moved up from USD 75.9/MT,CFR in beginning of week to USD 78/MT, CFR. Restocking by Chinese steel mills ahead spring construction season that starts in March has kept iron ore demand strong. Also demand for iron ore lump remained firm and may move up if Hebei province puts sinreing cuts in March.

Coking coal prices continue to remain on higher side – Australian coking coal offers continues to remain on higher side on increased buying from Chinese mills.

With the motive to resume full-fledged production post Lunar Holidays ,Chinese steelmakers are stocking coal in order to cater consumption needs.

Currently,Premium HCC prices was assessed at around USD 227.50/MT FoB Australia,which remain unchanged as compared to preceding week.

Chinese billet domestic offers remain stable-Domestic billet prices in China remain stable this week.Domestic billet prices in Tangshan (Northern China) were assessed at RMB 3,740/MT (ex-works, including 17% VAT).

Chinese HRC export offers remain unaltered over Lunar New Year Holidays -Chinese HRC export offers remained unaltered this week ahead of Lunar New Year Holidays which is starting from 15th February’17.

Thus manufacturers in China have also withdrawn their offers and are anticipating higher prices post holidays.

Presently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 585-595/MT,FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Prices of HRC in domestic market also remain stable on D-o-D basis and are hovering in the range of RMB 4,110-4,130/MT (Eastern China) and RMB 4,000-4,030/MT (Northern China) including VAT & other taxes.

Also,production mills in Tangshan have decided to limit the production capacity after winter heating season which will also affect nation’s steel prices in near term.

Chinese Re-bar export market remain mute– Chinese re-bar export offers remained unaltered this week.Major mills have withdrawn their re-bar export offers over Chinese Lunar New Year Holidays.

Currently, nation’s re-bar export offers are at USD 553/MT on FoB basis.Last week also the export offers stood at similar range.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research