Chinese Steel Market Highlights - Week 36, 2018

According to Mining News Pro -This week Chinese steel prices showed uptrend amid shortage of inventory in domestic market. Recent production cuts in China’s major steel making hub Tangshan city have started from 6th Sep’18 onwards. Meanwhile export offers remain largely stable over sluggish demand from overseas buyers.

Flat steel export offers remain stable. Rebar export offers inch up marginally.Coking coal offers rose amid active buying from steelmakers in China.However iron ore prices moved up towards weekend.

According to General Administration of Customs,China iron ore and pellet imports in Aug`18 recorded at 89.35 MnT, inch down against 89.96 MnT in July`18.Meanwhile finished steel exports remain largely stable at 5.875 MnT in Aug’18 against previous month.

Chinese spot iron ore prices move up towards weekend - Chinese spot iron ore prices opened up this week at USD 66.20/MT, CFR China and increased to USD 67.05/MT, CFR China towards the week end on increased trades.

Spot pellet premium for Fe 65% grade pellets assessed at USD 89.55/DMT, CFR China this week, up by USD 2.05/DMT W-o-W against USD 87.50/DMT a week before.

Spot lump premium has increased by USD 0.0460/DMTU this week to USD 0.3360/DMTU.The soaring pellet prices have made lumps comparatively less expensive, leading to increased demand. Lump inventory at Chinese major ports has recorded decline to 21.40 MnT this week, as against 21.60 MnT a week before.

Coking coal offers rises over active buying - Seaborne coking coal offers witness uptrend this week owing to active buying from steelmakers in China.Meanwhile demand from Indian buyers expected to resume as monsoon season subsides.

Currently Premium HCC prices are assessed around USD 189/MT FoB Australia.Last week the offers was in range of USD 183/MT FoB basis.

Chinese domestic billet prices edge up- Domestic billet prices in China have edged up throughout this week.

Current spot price assessment is at around RMB 4,110/MT (including VAT) for 150*150mm billet Q235 against RMB 4,060/MT in last week. Chinese billet export price assessment remained mostly stable at W-o-W at USD 535-540/MT, FoB basis.

Chinese HRC export offers remain stable over dull demand- This week Chinese HRC export offers remain firm amid lackluster demand in export market. Overseas buyers are bidding on lower side amid limited buying.

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.Overseas buyers are holding sufficient stocks in hand are in no urgent need to restock the material at the moment.

Prices of HRC in the domestic market are gauged at RMB 4,400- 4,490/MT (ex-works) in Eastern China and 4,290-4,300 /MT in Northern China amid lower inventory levels compared to previous week.

Chinese Re-bar export offers move up slightly-This week Chinese rebar export offers move up slightly amid higher prices in domestic market.

Currently,Chinese re-bar export offers are at USD 567-571/MT FoB China. Last week the offers was hovering in the range of USD 565/MT FoB basis.

Major mills are offering continue to offer at USD 600-605/MT FoB China.However market participants are reluctant to make bookings and are willing to purchase material from non Chinese suppliers.

Domestic rebar prices stood at RMB 4,500-4,560/MT in (Eastern China) and RMB 4,350 - 4,380/MT in (Northern China).

Rebar prices are expected to decline further amid weak demand in construction sector from the month of October.Thus weak demand can weigh on rebar prices in China.

Chinese Iron and Steel Prices Week 36,2018