Chinese Steel Market Highlights - Week 8, 2019

This week Chinese steel market witnessed increase in prices from the beginning of the week,however fall towards the weekend amid fluctuating futures.Menawhile export offers continued to remain on higher side.

Nation's HRC and rebar export offers increased over surge in domestic prices.Coking coal offers edges up this week. However billet export offers remain stable.Meanwhile iron ore prices dropped towards the weekend.

Chinese spot iron ore prices drop towards the weekend - Chinese spot iron ore prices opened up this week at USD 88.8/MT, CFR China and dropped to USD 86.7/MT towards the weekend.Towards the beginning, prices moved up on strong demand for March cargoes.

Iron ore inventory at major Chinese ports increased 145.05 MnT against 143.6 MnT towards last weekend.

Spot lump premium witnessed almost stable W-o-W at USD 0.3400 /DMTU. The lump inventory at major Chinese ports increased to 15.8 MnT against 15.6 MnT a week ago.

Coking coal offers edged up this week - Seaborne premium-grade coking coal prices reported increase this week as the Chinese buyers are gradually returning to the market.

However buying remained subdued as buyers are not in urgent need of material post Lunar holidays.

Thus, premium HCC coking coal prices are heard around USD 215/MT FoB Australia. However last week the offers was at USD 208.50/MT FoB Australia.

Chinese domestic billet prices fall marginally- Domestic billet prices in China's Tangshan for 150*150mm closed this week at RMB 3,510/MT (ex-works, including VAT).Billet export offers remained stable at USD 460/MT FoB basis

Chinese HRC export offers rose further- Chinese HRC export offers inch up by USD 5-10/MT this week following hike in HRC prices in domestic market.

Chinese mills are increasing HRC export offers in line with rising iron ore prices amid accident in one of the Vale's iron ore mines in Brazil.

Also bullish market sentiments in exports and domestic market over recovery in demand pushes prices in upward direction.

Currently nation's HRC export offers are assessed at around USD 515-520/MT FoB basis.Last week the offers was in range of USD 510-520/MT FoB basis.

Domestic prices in eastern China (Shanghai) up by RMB 30/MT on weekly basis and are hovering at RMB 3,760-3,790/MT which was RMB 3,730- 3,740/MT last week.

Chinese re-bar export offers inch up over recovery in demand- Nation's re-bar export offers inch up following gains in domestic market and recovery in demand.

Currently,nation's rebar export offers are at USD 515-520/MT FoB China.Last week the offers was in range of USD 510-520/MT FoB basis.

Meanwhile major mills are offering rebar on higher side which is around USD 530-535/MT FoB basis.

Domestic prices also witness increase over surge in billet prices.Domestic rebar prices is assessed at RMB 3,700-3,740/MT in (Eastern China) and RMB 3,700-3,720/MT (Northern China).

However on weekly basis domestic rebar prices decline by RMB 50/MT as the price was RMB 3,750-3,780/MT last week.

Chinese steel market Highlights - Week 8, 2019

Source -SteelMint Research