Chinese Steel Market Highlights-Week 21

This week Chinese steel market was consumed with bearish sentiments owing to falling iron & steel prices along with dull buying in domestic market.Flat steel and rebar export offers inched down marginally this week.Chinese billet export offers continued to remain stable and coking coal offers remained range bound. Spot iron ore prices also witness  downtrend this week.

Chinese spot iron ore prices declined sharply – China spot iron fines prices declined sharply over fall in futures and fall in domestic steel prices. Iron ore fines (Fe 62%) index touched USD 63.4/MT, CFR China. Spot lump premium was assessed at USD 0.184/MT, CFR and pellet premium increased sharply to USD 53.4/MT, CFR China. Iron ore inventory at China’s major ports increased 1.6 MnT W-o-W to 160.58 MnT.

Coking coal offers continued to remain stable this week – Seaborne coking coal prices continued to remain stable this week over slow demand and excess supply in Australian coal market. Also,China’s domestic coking coal prices picked up strength this month due to a recovery in the coke market coupled with aggressive restocking by steel mills.

Currently, Premium HCC prices were assessed at around USD 184.75/MT FoB Australia.However, coking coal prices may gain strength on increased demand from construction sector in China.

Meanwhile Australian railroad Aurizon’s notification to the Queensland Resource Council (QRC) that it would cut train movements on its Goonyella Line may uplift met coal prices in near term.

Domestic billet prices in China edge up after witnessing decline in week– Domestic billet prices in China rebounded to RMB 3,680/MT (incld 17% VAT) for Q235 billet in Tangshan by week close. Chinese billet export price assessment remained stable at USD 540-550/MT, FoB China.

Chinese HRC export offers rose marginally-Nation’s HRC export offers fell marginally by USD 5/MT W-o-W amid bearish sentiments in domestic market.

Currently Chinese HRC price assessment is in the range of USD 580-585/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.

Major mills in China are planning to quote the offers next week for August shipments.Prices of HRC in the domestic market are gauged at RMB 4,210-4,230/MT (ex-works) in Eastern China and 4,080-4,100 /MT (Northern China).

Chinese Rebar exports offers fell slightly this week-Nation’s re-bar export offers fell marginally this week by USD 5/MT amid weak buying from overseas buyers.

Currently, nation’s re-bar export offers are at USD 545-550/MT FoB China. However last week the offers are assessed around USD 550-552/MT FoB basis.

Meanwhile prices in the domestic market are heard at RMB 3,830-3,880/MT in (Eastern China) and RMB 3,850 – 3,870/MT in (Northern China).

Chinese Iron and Steel Prices Week 21

Source-SteelMint Research