Chinese Steel Market Highlights Week 1, 2018
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In the first week of this calender year Chinese steel market observed hike in seaborne iron ore prices despite decline in domestic billet and rebar prices. Rebar prices declined amid severe construction activities resulting in fall in rebar prices.
Seaborne iron ore prices moved up - Seaborne iron ore prices in China increased as a measure of restocking done by steel mills ahead of Chinese New Year Holidays in mid of Feb'18. Fe 62% fines prices climbed to USD 77/MT, CFR China which was at USD 75/MT, CFR China in the beginning of the week.
Spot lump premium increased amid improved demand in seaborne lump market. Lump premium increased and stood at USD 0.104/MT. Pellet premium declined marginally USD 42.5/DMT, CFR China
Coking coal prices remain stable amid year end holidays-This week coking coal prices remained stable owing to thin buying amid year end holidays.Also,winter holidays in Australia which will go until 8 Jan'18.
Currently Premium HCC prices was assessed at around USD 262.25/MT FoB Australia, which is similar to previous week prices levels.
Chinese billet offers fall in domestic as well as global market - Chinese billet export offers declined sharply to USD 520-530/MT, FoB China against last week's assessment of USD 560/MT, FoB .Prices in the domestic market also declined this week amid extreme climate affecting construction activities and closed at RMB 3,630/MT (ex-works, including VAT) in Tangshan, China.
Major mills in China rolled over HRC export offers this week-Major mills in China have rolled over the HRC export offers in the first week of January owing to weakening domestic market.Benxi iron and Steel and Rizhao steel have rolled over the export offers and are heard around USD 585/MT FoB China.
Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575-585/MT,FoB China
Prices of HRC in domestic market moved up by RMB 10/MT and are hovering in the range of RMB 4,250-4,280/MT (Eastern China) including VAT & other taxes.
Chinese Re-bar export offers remained steady-Chinese Re-bar export offers remained steady on weekly basis owing to sparse trading in export market.Currently nation's re-bar export offers are at USD 565/MT on FoB basis.
However markets participants mentioned that bids were heard at USD 555-560/MT FoB basis but no major deals have been concluded yet.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices per MT | 1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China | USD | 77 | 73 | 70 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) | RMB | 755 | 730 | 705 |
| Met Coke, 64%, FoB China | USD | 385 | 382 | 326 |
| Chinese Domestic Billet, ex-works | RMB | 3,630 | 3,870 | 3,779 |
| Billet 150*150 mm, FoB China | USD | 525 | 560 | 555 |
| HRC, FoB China | USD | 575 | 580 | 570 |
| CRC, FoB China | USD | 620 | 620 | 600 |
| Rebar, FoB China | USD | 562-565 | 565 | 548 |
Source-SteelMint Research
