Chinese Steel Market Highlights - Week 38, 2018

This week Chinese steel market consumed with bearish sentiments as China’s Tangshan government released document announcing that categorized mills into four categories - with those meeting the required environmental standards need not to limit production, while others will be required to cut production by 30%, 50% and 70%, respectively.The new rule will come into effect from 1st Oct 2018 and is scheduled till 31st March 2019

Trade activities slowed down towards the weekend ahead of upcoming mid Autumn festival scheduled during 22-24 Sept’18.

This week rebar and flat steel export offers inch down owing weakening domestic prices.Coking coal offers also move down marginally.However iron ore prices witness uptrend this week.

Chinese spot iron ore prices increased amid restocking- Chinese spot iron ore prices opened up this week at USD 69.50/MT, CFR China and increased to USD 69.8/MT, CFR China towards the mid-week end before falling slightly on Friday. The prices witnessed a rise amid restocking ahead of the Chinese national holiday. Iron ore inventory at major Chinese ports have reduced to 149.10 MnT as against 149.50 MnT, last week.

Demand for raw material in China is expected to enhance post the Chinese National Holiday (1st Oct to 5th Oct).

Spot lump premium remain firm this week at USD 0.3400/DMTU. Lump inventory at Chinese major ports decreased to 20.60 MnT this week, as against 21.20 MnT a week before.

Spot pellet premium fell marginally- Spot pellet premium for Fe 65% grade pellets has come down marginally and is assessed at USD 87.1/DMT, CFR China, down by USD 1.8/DMT W-o-W against USD 88.9/DMT a week before.

Coking coal offers fell marginally - Seaborne coking coal offers inch down this week as buyers are hesitant to book amid uncertainty in near term prices.

Meanwhile, India’s Rupee depreciation in last month against the US dollar has increased end users cost and making the same not viable at the moment.

Currently Premium HCC prices inch down by USD 3/MT W-o-W basis and are assessed around USD 205.50/MT FoB Australia.Last week the offers was in range of USD 208.50/MT FoB basis.

Chinese domestic billet prices fall marginally- Domestic billet prices in China have come down amid soft demand. Current spot price assessment is at around RMB 4,030/MT (including VAT) for 150*150mm billet Q235 against RMB 4,100/MT in last week. Chinese billet export price assessment fell marginally W-o-W at USD 530-535/MT, FoB basis.

Chinese HRC export offers decline further this week- Chinese HRC export offers decline further by the end of this week by USD 5-10/MT in line with falling HRC prices in domestic market.Bearish sentiments and sluggish demand results to falling prices of HRC in Chinese market.

Currently Chinese HRC export offers heard around USD 560-570/MT, FoB China. Payment made on letter of credit basis for 1,000-10,000 MT.In the beginning of the week offers was hovering in range of USD 570-575/MT FoB China.

Domestic prices down by RMB 30/MT on D-o-D basis.Prices of HRC in the domestic market are gauged at RMB 4,290-4,310/MT (ex-works) in Eastern China and RMB 4,200-4,210 /MT in (Northern China).

Chinese Re-bar export offers move down in line with falling billet prices
This week Chinese rebar export offers slid down in line with falling billet prices in domestic market

Currently,Chinese re-bar export offers are at USD 569/MT FoB China.Last week the offers was hovering in the range of USD 572/MT FoB basis.Major mills are offering  at USD 585-590/MT FoB China.

Domestic rebar prices stood at RMB 4,530-4,580/MT in (Eastern China)  and RMB 4,330-4,380/MT in (Northern China).

Chinese Iron and Steel Prices Week 38,2018

Source-SteelMint Research