China: Weekly Steel Market Highlights

In the last week of this calender year Chinese steel market observed a dull beginning amid Christmas holidays however later trade activities picked up to some extent. Chinese flat steel and re-bar export offers observed marginal decline. Coking coal prices marked the new high and continuously moving upwards over robust demand from importing nations.

Seaborne iron ore prices exhibited fluctuations -Seaborne iron ore prices in China increased on steel gains. Fe 62% fines prices towards the beginning of the week was at USD 73.5/MT then fell to USD 73/MT and then towards the weekend remained at USD 73-74/MT, CFR China. Trade activities remained limited over holidays

Spot lump premium fell amid softening demand in seaborne lump market and increased stock of lump at Chinese major ports.

Lump premium declined and stood at USD 0.081/MT. Pellet premium remained stable on limited trades and was assessed at USD 43/DMT, CFR China

China produced 109.7 MnT crude iron ore (Run-of-Mine) in Nov'17. On monthly premises China's ROM production has moved down by 9% against 120.7 MnT in Oct'17.

Coking coal prices surged to highest in CY 17- Coking coal prices recorded a new hike and surged by USD 16/MT which is by far the highest in CY17.Price rally continues owing to supply constraints amid winter holidays in Australia which is from 20 Dec'17 and extended to 8 Jan'18. Meanwhile strong demand from the importing nations like China,Japan has led to rapid increase in coking coal prices.

Currently Premium HCC prices was assessed at around USD 262.25/MT FoB Australia, moved up by USD 16.25/MT compared to USD 246/MT in previous week.

Chinese billet export offers inched up by USD5/MT W-o-W - Chinese billet export offers rose marginally by USD 5/MT this week and are assessed around USD 560/MT,FoB China. Last week billet export offers was heard at USD 555/MT FoB basis.

However prices in the domestic market was gauged at RMB 3,740/MT (ex-works, including VAT) in northern China in the beginning of the week and started to decline amid new year holiday and was assessed at RMB 3,670/MT (ex-works, including VAT).

Chinese HRC export offers decline marginally over thin trading- Chinese HRC export offers started to fall ahead of year end trading in export market.This week Chinese HRC export offers fall marginally by USD 5/MT however domestic market remained largely stable with few fluctuations in futures.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 570/MT,FoB China.Last offers were heard in the range of USD 575/MT on FoB basis.

Prices of HRC in domestic market moved up by RMB 10/MT and are hovering in the range of RMB 4,280-4,310/MT (Eastern China) and RMB 4,170-4200/MT including VAT & other taxes.

Chinese Re-bar export offers moved down by USD 5/MT-Chinese Re-bar export offers continued to move down further by USD 5/MT W-o-W basis owing to sparse trading before the new year weekend.

Currently nation's re-bar export offers are at USD 565/MT on FoB basis.Previously it was assessed in range of USD 570/MT FoB basis.

However markets participants mentioned that bids were heard at USD 560-590/MT FoB basis but no major deal have been concluded yet.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research