China Steel Market Highlights Week-21

There was the slight upward movement in global iron ore prices but largely it remained stable. Easing coking coal supplies from Australia pulled down coal prices further.

Chinese spot iron ore prices slightly up - Fe 62% fines index in China remained range bound this week and stood at USD 60-62/MT, CFR China. With drop in iron ore futures and dull trades, spot iron ore index remained stable.

Iron ore inventories at Chinese major ports remained on the high side. On 19 May'17, iron ore stock at Chinese major ports was recorded at 136 MnT up by 1.3% W-o-W. Lump premium moved up to USD 0.07/DMT, CFR China. Pellet premium increased to USD 20.80/DMT, CFR China.

Coking coal prices continues to decline further - The latest offer for the Premium HCC is reported lower by USD 10/MT at USD 168/MT FoB Australia against USD 178/ MT reported last week. Market participants mentioned that price will continue to decline since they are expecting the spot price of the Premium HCC to recede to around USD 155/MT.

Chinese billet export Rises by USD 5/MT - Chinese billet export offer rose by USD 5/MT and are heard in the range of USD 405-410/MT, FoB China. However,market sources anticipated prices to drop further over limited trades.

China's flat products export offers rises over domestic gains- Chinese flat product prices gained momentum this week by USD 5-10/MT over strengthening domestic market. Hence HRC export offers are prevailing in the range of USD 420-430/MT, FoB China. Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,070-3,110/MT.

Chinese Re-bar Prices inched up on improved Domestic Demand-
Chinese re-bar export offers gain by USD 5/MT to USD 425-430/MT, FoB Main port amid subdued demand in the export market.Spot prices in Eastern Region (Shanghai) rose sharply by RMB 220/MT (USD 32) with current offers at RMB 3,630/MT (USD 528). Similarly, Northern Region (Beijing) it surge by RMB 50/MT (USD 7) to RMB 3,560/MT (USD 518) for HRB 400 grade (25 mm), W-o-W.

Steel Raw Material & Finished Steel Prices in China

Prices mentioned are on per tonne basis
Source: SteelMint Research