Chinese Steel Market Highlights - Week 30,2018

Flat steel export offers inch down slightly and rebar export offers remain range-bound.Billet export offers remain stable.Coking coal prices fell further amid strict import restrictions in China.However iron ore prices edge up towards the week end.

In June 2018, China’s customs authority had carried out a crackdown on the smuggling of scrap and waste steel in an operation that was launched amid a rapid increase in country’s scrap export volumes.This resulted in delayed shipments.

Thus China’s customs department announced stricter customs system in order to regulate the import-export of mineral commodities.This new system will come into effect from 1 Aug’18.

Chinese spot iron ore prices edge up towards weekend - Chinese spot iron ore prices opened up this week at USD 65.20/MT, CFR China and increased to USD 65.45/MT, CFR China towards week end.

Improved demand for Australian iron ore owing to cost effective measures have resulted in better realization of iron ore.

Iron ore inventory at Chinese major ports reduced to 155.68 MnT, against 155.78 MnT a week before.

Spot lump premium declined by USD 0.0075/MT to USD 0.28/MT, CFR this week. Spot pellet premium declined by USD 0.85/MT W-o-W and assessed at USD 62.90/MT, CFR China.

Coking coal offers decline further amid strict port restrictions in China- Seaborne coking coal offers witness downtrend amid ongoing uncertainties over the US-China trade war along with strict import restrictions at various ports in China.

Meanwhile falling coke prices,environmental restrictions on coal consumption and upcoming production cuts on steel and coke capacity has hampered the buying interest from China

Thus currently,Premium HCC prices fell by USD 7.75/MT and were assessed around USD 173/MT FoB Australia compared to USD 180.75MT FoB basis a week ago.

Chinese domestic billet offers move up - Chinese domestic billet prices have increased throughout the week. Spot price of 150*150mm, Q235 billet in Tangshan stood at RMB 3,870/MT (including VAT) against RMB 3,800/MT (including VAT) a week ago.

Chinese HRC export offers inch down- Chinese HRC export offers have come down marginally this week over softening demand in domestic and export market.

Currently Chinese HRC export offers heard around USD 575-580/MT, FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.Last week the offers were in range of USD 580-585/MT FoB basis.

Domestic prices witness surge amid announcement of production cuts as per the orders made by Chinese government

Prices of HRC in the domestic market are gauged at RMB 4,270-4,300/MT (ex-works) in Eastern China and 4,190-4,220 /MT (Northern China).

Chinese Re-bar export offers remain range-bound-  Nation’s re-bar export offers remained steady over weaker bookings and low buying from overseas buyers.

Currently,Chinese re-bar export offers are at USD 550-565/MT FoB China. Bids remained on lower side which is around USD 545/MT FoB China as buyers have adopted wait and watch mode.

Meanwhile prices in the domestic market stood at RMB 4,130-4,180/MT in (Eastern China) and RMB 4,030-4,060/MT in (Northern China).

Chinese Iron and Steel Prices Week 30,2018