According to market sources report to SteelMint, spot prices of Indian origin pellets have edged up in the beginning of this week. Trade sources highlighted that few deals have been reported at around USD 110/MT, CFR China. Last week the price assessment was recorded at USD 106-107/MT, CNF China.
On weekly basis, Indian pellet export price assessment has moved up by around USD 3-4/MT.
Towards the beginning of last week, an Odisha based pellet maker had concluded pellet export deal of 50,000 MT pellets at USD 106/MT, CFR China (which is equivalent to USD 96-97/MT, FoB India). The prices fell to 7-months low.
Chinese Domestic spot billet (150*150mm, Q235) prices in Tangshan, China assessed at RMB 3,510/MT by the end of the last week against RMB 3,370/MT towards the beginning of the week. Today, prices have climbed to RMB 3,530/MT( including 17% VAT).
Chinese domestic HRC prices witnessed at RMB 3,820- 3,840/MT towards the end of last week in Eastern China (up by RMB 40/MT) D-o-D basis. Increasing further, today prices have climbed to RMB 3,860-3,880/MT.
Which all factors have boosted steel prices in China ?
Extended steel production cuts – China’s key steel producing region Hebei has recently released its new capacity cut plans for three years starting from 2018 to 2020. China’s leading steel producing cities of Tangshan and Handan have ordered production cut till 15th Nov. Handan in northern Hebei province has ordered steel mills to cut production by around 25% as part of new measures to curb pollution from 01 Apr’18 to 15 Nov’18.
Also, there are anticipations that construction activities will pick up in early April signalling positive sentiments in Chinese iron & steel market.
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