Flat steel and rebar export offers witness decline amid weak buying.Coking coal prices also fell marginally owing to dull demand from Chinese buyers.Iron ore prices remained range bound.
Chinese spot iron ore prices remain range bound - Chinese spot iron ore prices opened up this week at USD 64.6/MT, CFR China and fell marginally to USD 63.8/MT towards mid of the week and then again moved up USD 64.45/MT, CFR China. Iron ore inventory at Chinese major ports stood at 157.58 MnT, up by 1.7 MnT W-o-W.
Spot lump premium remained mostly stable at USD 0.22/MT, CFR. Emision cuts in China has boosted demand for iron ore lump & pellets. Spot pellet premium increased and was assessed at USD 60.5/MT, CFR China.
Coking coal offers decline amid weak purchases- Coking coal prices decline this week as sentiment in the Chinese market weakened with buyers awaiting correction.
Previously,in last two months coking coal offers increased to their peak levels owing to uncertainties from Australian supply arising from changes made by Queensland’s rail freight operator Aurizon to its operational and maintenance practices.
Thus currently,Premium HCC prices were assessed at around USD 198.50/MT FoB Australia compared to USD 200/MT FoB basis.
Domestic billet prices in China inch up towards weekend - Domestic billet prices in China have edged up towards week close after witnessing fall throughout the week. Prices are assessed at RMB 3,680/MT (including VAT) for 150*150mm Q235 grade against close of RMB 3,660/MT (including VAT) a day before.
Chinese HRC export offer remained soft amid dull buying- Chinese HRC export offers remain stable and witness marginal drop by the end of this week.
Domestic prices in China rebound amid fluctuating futures which has kept export offers remain firm. Currently Chinese HRC export offers heard around USD 590-600/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.
Prices of HRC in the domestic market are gauged at RMB 4,260-4,270/MT (ex-works) in Eastern China and 4,170-4,180 /MT ( Northern China).
Bids from Vietnamese buyers remained on lower side .Thus, weak buying in domestic market may result to decline in HRC exports from major mills in China.
Chinese Re-bar exports offers decline towards the week end-Nation’s re-bar export offers started to increase in the beginning of the week amid strong futures.However towards the end of the week prices started to decline amid depreciation of Chinese currency Yuan against USD.
Currently,nation’s re-bar export offers are at USD 550/MT FoB China. However last week the offers are assessed at USD 558/MT, FoB China
Besides this a major Chinese mill based in northern region has decline their rebar export offers by USD 8/MT and are heard around USD 550/MT ,FoB basis.
Meanwhile prices in the domestic market stood at RMB 3,990-4,030/MT in (Eastern China) and RMB 3,870-3,910/MT in (Northern China).
Chinese Iron and Steel Prices Week 26,2018
