Friday 22 November 2024 - 08:46

Date: 07 November 2018 , 14:24

News ID: 2520

NEWS SERVICE: MINES and MINERALS

Chinese Steel Market Highlights - Week 42, 2018

Spot iron ore fines prices moved up on weekly basis, demand for pellets remained on lower side resulting in reduction in sharp decline of USD 10.5/MT in spot pellet premium.

China’s crude steel output in Sept’18 stood at 80.85 MnT, up 1% M-o-M. Compared to Sept’17, it was up by 13%. China’s Shagang Steel raised scrap purchase by RMB 60-80/MT.

Chinese HRC export offers declined while rebar export offers remained stable on weekly basis.

Chinese spot iron ore prices up; pellet premium falls sharply - Chinese spot iron ore prices opened up this week at USD 71.25/MT, CFR China and increased to USD 73.45/MT, CFR China towards the week end. Iron ore inventory at major Chinese ports have witnessed rise of 1.5 MnT this week to 144 MnT. Buying interest by steel mills reduced due to uncertainty on winter production cuts.Spot lump premium has witnessed stability since few weeks at 0.3320/DMTU. Lump demand in Chinese market remains strong for the winter heating season and so is expected to pick up soon.

Spot pellet premium for Fe 65% grade pellets assessed at USD 74.10/DMT, CFR China this week, down by USD 10.50/DMT W-o-W against USD 84.60/DMT a week before. The pellet purchase was observed on the lower side due to weakened buying interest from Chinese mills.

Coking coal offers up on supply concerns- Seaborne coking coal offers moved up this week. However Chinese buyers continue to hold back from booking material. Currently Premium HCC prices is assessed around USD 223/MT FoB Australia. Last offers was hovering in range of USD 217/MT FoB basis. Persistent vessel queues at Dalrymple Bay Coal Terminal in Queensland and concerns about Australia’s rainy season approaching would prevent any significant correction in FOB prices in the coming weeks.

Chinese domestic billet prices declined towards week end - Domestic billet prices in China have come down amid soft demand. Current spot price assessment is at around RMB 3,940/MT (including VAT) for 150*150mm billet Q235 against RMB 3,960/MT a day before and RMB 3,900/MT in last week.

Chinese HRC export offers slide further- This week Chinese HRC export offers moved down by USD 10/MT. Currently HRC export offers from China was assessed around USD 550-560/MT FoB basis against last week assessment of USD 555-560/MT, FoB China.

Chinese mills have decreased prices in domestic market towards weekend and are offering at RMB 4,180-4,200/MT (ex-works) in Eastern China against RMB 4,220-4,250/MT (ex-works).

Chinese Re-bar export offers remain steady-Nation’s rebar export offers remain firm despite decrease in domestic prices. Currently,nation’s re-bar export offers are at USD 569-570/MT FoB China. However domestic rebar prices stood at RMB 4,540-4,580/MT in (Eastern China).