Chinese Steel Market Highlights: Week 22

Chinese re-bar and flat steel prices showed upward momentum this week on account of strengthening domestic prices. Coal prices seems declining this week owing to improved supply & less buying from chinese steel mills. Spot iron ore prices in China fell 6% W-o-W amid less trade activities.

Chinese spot iron ore prices fell 6% W-o-W - Fe 62% fines index in China remained range bound this week and stood at USD 60-62/MT, CFR China in early this week. With drop in iron ore futures and dull trades, spot iron ore index fell towards the weekend and stood at USD 57.8/MT, CFR China yesterday. Chinese steel mills seemed to have enough inventories kept themselves away from restocking ahead upcoming holidays.

Iron ore inventories at Chinese major ports remained on the high side. On 26 May'17, iron ore stock at Chinese major ports was recorded at 136.6 MnT up by 0.4% W-o-W. Lump premium moved up to USD 0.098/DMT, CFR China. Pellet premium increased further to USD 22.05/DMT, CFR China.

Coking coal prices continues to decline further On Excess Supply- Global Coking Coal prices have drop down further this week owing to excess supply from Australia over eased supply.The latest offer for the Premium HCC is down by USD 12/MT W-o-W and are heard in the range of USD 156/MT FoB Australia.Since Chinese steel mills have stocked up the coal inventories resulting to reduced demand for imported coal.

Chinese billet export offers stable this week - Chinese export offers for 150*150mm assessed at USD 415-420/MT FOB China, however workable price assessed at USD 405-410/MT FoB China.Moreover, billet export offers remained stable since last few weeks as the prices in domestic market remained on higher side amid domestic furnaces are also getting shut down due to environmental concerns.

China's flat steel export offers rises on domestic gains - Chinese flat steel prices surged this week by USD 10-15/MT over strengthening domestic market. HRC export offers are prevailing in the range of USD 440-450/MT, FoB China. Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,190-3,220/MT (ex-works). Chinese CRC export offers are at USD 465-475/MT, FoB basis.

Chinese Re-bar Prices Jumped this week - Chinese re-bar export offers jumped high by USD 25/MT,this week to USD 450-455/MT, FoB China.While, in spot market offers are were- East China, Shanghai at RMB 3,700/MT (USD 538); up by RMB 70 /MT (USD 10) .Chinese mills kept the prices competitive to secure larger sales volume ahead of a holiday (Dragon Boat Festival) approaching in the country.

Steel Raw Material & Finished Steel Prices in China

Prices mentioned are on per tonne basis
Source: SteelMint Research