Chinese Steel Market Highlights - Week 43, 2018

According to Mining News Pro -This week Chinese steel market was consumed with mixed sentiments as nation witnessed drop in flat steel prices but hike in rebar prices over gains in domestic market. Flat steel export offers recorded significant drop over thin trades and decline in domestic prices. Although on the other hand rebar export offer increases amid higher prices in domestic market. Shagang Steel raised finish steel prices for late October shipments - The mill is selling its HRB 400 16-25 mm rebar at RMB 4,730/MT (USD 681) over the period 21st-31st October, up RMB 50/MT from its last set of prices for products shipped during mid Oct’18.

Iron ore fines prices increased throughout this week owing to restocking of material ahead of winter production cuts. Billet export offers remain on lower side and coking coal offers soften over slowdown in buying.

Chinese spot iron ore fines prices surge throughout the week - Chinese spot iron ore fines (Fe 62%) prices opened up this week at USD 75/MT, CFR China and increased to USD 78/MT, CFR China towards the week end. The prices have picked up amid restocking of material ahead of large scale production cuts which is likely to be commenced. However with few anticipations are coming that cuts will not be as severe as expected, Chinese mills are preferring fines over pellets.

Spot pellet premium for Fe 65% grade pellets assessed at USD 72.35/DMT, CFR China this week, down by USD 1.75/DMT W-o-W against USD 74.10/DMT a week before. Spot lump premium has witnessed stability since last week end at 0.3350/DMTU.

The pellet purchase by Chinese mills is observed on the lower side due to relaxation in environmental controls by the Chinese government in Tangshan, followed by shift towards adoption of fines, as evident from rising iron ore prices.

Coking coal offers remain soft amid slowdown in buying activity- Seaborne coking coal offers remain soft this week after reaching to their peak levels.Recently Chinese based Shandong province faces accident in coal mine and thus local authorities have halted the production at 41 coal mines.However this incident had little impact on offers of coking coal from China.

Currently Premium HCC prices is assessed around USD 219.50/MT FoB Australia. Last offers was hovering in range of USD 223/MT FoB basis.

Meanwhile coking coal prices from China may remain supported in near term as Chinese steelmakers will restock the material as winter season start approaching.

Chinese domestic billet prices - Domestic billet prices in China have come down amid soft demand. Current spot price assessment is at around RMB 4,060/MT (including VAT) for 150*150mm billet Q235 against RMB 3,980/MT in last week.

Chinese HRC export offers fell further over scant buying-Chinese HRC export offers slipped further over thin trades and fewer bookings in domestic and export market.Sluggish demand from automotive and household appliance industries is reflecting in Chinese steel prices.Thus Chinese mills are expecting further downtrend in steel prices.

Currently HRC export offers from China is assessed around USD 535-540/MT FoB basis.In the beginning of the week nation’s HRC prices stood at USD 545-560/MT FoB basis.

However prices of HRC in the domestic market is presently assessed at RMB 4,170-4,180/MT (ex-works) in Eastern China and RMB 4,080-4,100 /MT in Northern China.

Meanwhile end users in Vietnam are also bidding on lower side which is around USD 530/MT FoB basis.However Malaysian buyers are willing to pay around USD 535-538/MT FoB China.

Chinese Re-bar export offers inched up amid gains in domestic market-Nation’s re-bar export offers increase over strengthen market sentiments in domestic market.Higher prices of re-bar in domestic market lift up re-bar export offers from China.

Currently,nation’s re-bar export offers are at USD 578-580/MT FoB China.Last week rebar export offers was assessed at USD 570/MT FoB basis.

Major mills in China are offering rebar export offers at USD 595-600/MT FoB basis.

Domestic rebar prices surged by RMB 100-110/MT W-o-W basis and is assessed at RMB 4,650-4,680/MT in (Eastern China) and by RMB 70/MT RMB 4,400-4,440/MT in (Northern China).

Chinese Iron and Steel Prices Week 43,2018