Chinese Steel Market Highlights-Week 44
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This week Iron ore prices declined towards the end of the week. Chinese HRC export offers showed the downward trend amid weak domestic market.However re-bar prices witness the rise towards and coking coal prices saw the marginal rise over anticipated rainfall in Australia.
Seaborne iron ore prices fell towards the week end - Amid bearish sentiments in the market and fall in futures iron ore prices witnessed decline. Benchmark index in China for Fe 62% fines fell towards the end of the week and closed at USD 60/MT, CFR China. Spot lump premium remained stable at USD 0.25/MT. However pellet premium moved up slightly to USD 56.3/DMT, CFR China owing to strong demand from Chinese steel mills.
Coking coal prices moved up slightly amid predicted rainfall - Coking Coal prices have shown marginal increase as Meteorological Department in Australia of heavy rainfall, towards the end of 2017. Spot prices of the Premium HCC were last assessed at around USD 181/MT FoB Australia.
Chinese billet export offers remain stable, trades limited- Chinese billet export offers kept hovering at USD 505-515/MT, FoB China. However trades remained dull. Domestic billet prices in China also maintained stability this week and remained at higher levels than last week with slight corrections towards weekend.
Decline in domestic market leads to HRC export offers in pressure- Nation's HRC export offers remained on the lower side owing to weakening domestic market.HRC commercial grade ASTM A36 export offers were prevailing in the range of USD 551/MT FoB China.Traders are accepting the bookings in the range of USD 550-555/MT FoB basis.CRC export offers was assessed at USD 600-610/MT on FoB basis.
Chinese Rebar export offers moved up - Chinese Rebar export offers moved up by USD 7.24/MT and are heard in the range of USD 534.77/MT.Few deals have been settled at USD 530-540/MT.However buyers are expecting fall in rebar export offers owing to bearish sentiments in domestic market.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices | 1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China | USD | 60 | 63 | 79 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) | RMB | 670 | 670 | 660 |
| Met Coke, 64%, FoB China | USD | 342 | 352 | 375 |
| Chinese Domestic Billet, ex-works | RMB | 3,740 | 3,660 | 3,530 |
| Billet 150*150 mm, FoB China | USD | 505-510 | 510 | 530 |
| HRC, FoB China | USD | 550 | 565 | 580 |
| CRC, FoB China | USD | 600-610 | 600 | 620 |
| Rebar, FoB China | USD | 530 | 525 | 560-575 |
Source: SteelMint Research
