The domestic prices were firm this week with the strengthening of the futures market towards the end of the week. However, heavy rains during the week weighed on the domestic market demand.
HRC and rebar export offers remained firm. Iron ore prices increased on rising concerns over stringent pollution control and bad weather conditions. Coking coal prices remain unchanged this week.
China spot iron ore fines price rose towards weekend –
Chinese spot iron ore prices opened at $99.7/t this week and then increased to $101.2 towards the weekend. However, the expectation of stricter pollution control in China for July and the rainy season in southern China continued to slow down construction activities continue to weigh on prices.
As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports increased to 109.75 mn t as against 109.25mn t assessed a week ago.
Spot pellet premium up w-o-w-
Spot pellet premium for Fe 65% grade pellets assessed at $ 17.9/t up by $ 5.75/t w-o-w. As per data compiled by SteelHome consultancy, pellet inventory at major Chinese ports increased to 8.1 mn t as against 7.5 mn t assessed a week ago.
Spot lump premium fell on the week-
Spot lump premium witnessed this week at $ 0.1050/dmtu as against $0.1125/dmtu last week. The rainy season in southern China raised complications in lump screening, with high moisture content, and hence, the demand continues to be on the lower side.
As per data compiled by SteelHome consultancy, lump inventory at major Chinese ports increased to 21.9mn t as compared to 21.2 mn t assessed a week ago.
Coking coal prices stable w-o-w-
Seaborne coking coal prices have remained mostly unchanged since last week, due to scarcity of trading activities as most market participants stayed on the side-lines.
Chinese end-users were reluctant to pay current price levels for seaborne cargoes of coking coal amid a lack of clarity on price trends. Meanwhile, Chinese buyers’ import quotas have been shrinking fast, while stringent custom restrictions at major coal-handling ports continue to remain in place.
The Indian demand for steel-related products has been recovering slowly but there is not much room for improvement until the end of October amid the ongoing coronavirus pandemic.
The latest offers for the Premium HCC grade are assessed at around $129.00/t CNF China continue to remain the same against the previous week.
Domestic billet price inched down-
This week, post-dragon-boat festival, the nation’s domestic billet market opened flat, i.e. at RMB 3320/t. During the week, the prices were noted hovering between RMB 3,300-3,320/t and closed at RMB 3,300/t.The domestic billet market sentiments were noted stable.
HRC export offers remain range-bound
The export offers this week remained range-bound on a weekly basis on limited trading. Also, increased political tensions between China and India kept the export market largely stable. Also, few importers are concerned regarding the delivery of previous bookings.
Currently, the offers are hovering at $440-445/MT FoB China, unchanged from the previous week. However, the major Chinese mills are offering between the range of a $440-450/t FoB basis.
Domestic market prices increased by RMB 10-20/t to RMB 3,740-3,760/t (Eastern China) as compared to RMB 3,720-3,750/t (Eastern China).
Rebar export offer fell marginally
The rebar export offers went down marginally by $3/t this week owing to low buying interest among importers amid cheaper availability from other exporting nations.
Currently, the offer stands around $452-460/t FoB China, which was $455-465/t FoB basis a week ago.
In similar lines, the domestic rebar prices also witnessed a decline of RMB 50/t to RMB 3,510-3,540/t when compared with RMB 3,560-3,590/t in the previous week.
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