Chinese Steel Market Highlights - Week 34, 2018

This week Chinese steel market was filled with bullish sentiments as steel prices depicted uptrend owing to recent production cuts announcement in Tangshan region. Thus spurt in domestic prices amid strengthening market sentiments resulted in hike in export offers from China.

Rebar and flat steel export offers moved up this week over increased prices in domestic market. Iron ore prices witness decline and coking coal offers remained range-bound.

Meanwhile China's industry and environment ministries have proposed to implement winter production cut in some of the north China cities this year starting from 1 October, 45 days earlier than in 2017. Thus anticipation of limited output boosted price hike.

Chinese spot pellet premium shoot up - Chinese spot iron ore prices opened up this week at USD 67.95/MT, CFR China and decreased to USD 65.65/MT, CFR China towards the week end.

Spot lump premium increased by USD 0.0220/MT this week to USD 0.2770/MT, CFR, due to better demand from Chinese buyers. Lump inventory at Chinese major ports has witnessed decline for second consecutive week to 21.50 MnT this week against 21.90 MnT in previous week.

Spot pellet premium for Fe 65% grade pellets assessed at USD 84.2/DMT, CFR China this week up by USD 7.35/DMT W-o-W against 76.85/DMT previous week. Meanwhile this week Pellet premium reached to their peak levels owing to limited offers in the spot market followed by aggressive bidding.

Coking coal offers remain range-bound this week- Seaborne coking coal offers remained range bound this week amid limited buying interest from steelmakers in China. Meanwhile stricter port restriction have lead to softening of demand for coal in China.

However recent production cuts announcement in China also results to dull buying interest from steelmakers in China.

Meanwhile, Indian buying activity has considerably subdued due to the onset of monsoon.

Currently Premium HCC prices are assessed around USD 184.50/MT FoB Australia remained similar as compared to previous week.

Chinese domestic billet prices edge down towards weekend - Domestic billet prices in China have continued to strengthen over increase in raw material prices however towards the weekend prices have come down. Current spot price assessment is at around RMB 4,130/MT (including VAT) for 150*150mm billet Q235. Chinese billet export price assessment also moved up by USD 5/MT W-o-W to USD 535-540/MT, FoB basis.

Chinese HRC export offers move up over gains in domestic market-Chinese HRC export offers witness increase by USD 10-15/MT by the end of the week over gains in domestic market.

Currently Chinese HRC export offers heard around USD 585-590/MT, FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.Last week the offers was hovering in range of USD 570-575/MT FoB basis.

Domestic HRC prices moved up by RMB 90-100/MT (USD 15) W-o-W basis.Thus prices of HRC in the domestic market are gauged at RMB 4,390-4,410/MT (ex-works) in Eastern China and 4,330-4,350 /MT (Northern China).

Chinese Re-bar export offers increase amid bullish sentiments in domestic market-This week Chinese rebar export offers witness upward momentum owing to higher prices in domestic market.

Currently,Chinese re-bar export offers are at USD 565/MT FoB China. Last week the offers was hovering in the range of USD 555-560/MT FoB basis.

However major mills are offering on higher side which is around USD 605/MT FoB China.
Domestic rebar prices stood at RMB 4,450-4,500/MT in (Eastern China) and RMB 4,400-4,430/MT in (Northern China).

Chinese Iron and Steel Prices Week 34,2018

Source- SteelMint Research