Chinese Steel Market Highlights - Week 15, 2018

This week Chinese steel market remain consumed with mixed sentiments as the export offers moved down slightly despite uptrend in domestic prices. Post holidays flat steel and re-bar export offers registered decline.Coking coal offers also fell slightly over weak demand and iron ore offers remain range bound.

Meanwhile as per recent data released by customs,Chinese finished steel exports plunged by 27% to 15.15 MnT in Q1CY18 (Jan- Mar) against 20.73 MnT in Q1CY17.However on monthly basis nation has reported hike in export volumes by 16% to 5.85 MnT in Mar'18 against 4.85 MnT in Feb'18.

Chinese spot iron ore prices remained range bound - China spot iron fines prices increased in the 1st half of the week to USD 65.85/MT, CFR and then declined to around USD 64/MT, CFR towards the weekend. On monthly basis, China iron ore imports increased marginally by 2% to 85.79 MnT in Mar'18 against 84.27 MnT in Feb'18, however, on per day basis it was lower in Mar'18.

Spot pellet premium assessed at USD 44.4/MT, CFR China. Spot lump premium was assessed at USD 0.189/DMT, CFR China.

Coking coal offers slide down amid weak demand - Australian coking coal offers witness decline this week by USD 5/MT owing to oversupply coupled with weak demand from major importing nations.

Meanwhile tropical cyclone did not damage coal producing regions in Australia or any coal transport infrastructure.However normal business resumed post departure of the cyclone.

Currently,Premium HCC prices was assessed at around USD 192/MT FoB Australia. Last week the offers were heard at USD 197.50/MT FoB basis.

Although Indian steel makers have lowered their imports and anticipating downtrend in Coking Coal prices.

Domestic billet prices in China increase - After last week holidays, domestic spot billet(150*150mm, Q235) prices in China have increased slightly and is assessed at RMB 3,550/MT (including 17% VAT) against week opening of RMB 3,480/MT (including 17% VAT).
Chinese billet export offers are heard around USD 515/MT, FoB.

Chinese HRC export offers remained firm this week-China's HRC export offers remained firm this week post holidays. Despite upward momentum in domestic prices export offers remained on lower side amid thin trading.However on weekly basis nation's HRC export offers witness marginal decline.

Currently Chinese HRC price assessment is in the range of USD 575-595/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.Last week the offers was heard in the range of around USD 585-605/MT .

Prices of HRC in the domestic market are gauged at RMB 3,920-3,950/MT (ex-works) in Eastern China (up by RMB 10/MT D-o-D) and at RMB 3,870-3,890/MT (up by RMB 10-20/MT ) in Northern China.

Chinese Re-bar export offers decline by USD 5-10/MT - Nation's re-bar export offers registered decline this week by USD 5-10/MT amid bearish sentiments in domestic market.

Currently,nation's re-bar export offers are at USD 545-565/MT on China.However trade deals have been concluded at lower prices which is around USD 528-535/MT FoB basis.

Market participants are expecting the export offers to be around USD 530-535/MT FoB basis.

Meanwhile prices in the domestic market are heard at RMB 3,660-3,710/MT, up by RMB 30/MT (Eastern China) and RMB 3,670 - 3,700/MT up by RMB 10/MT(Northern China).

Chinese Iron and Steel Prices Week 15

Source-SteelMint Research