Chinese HRC and rebar export offers moved up this week over surge in Yuan..However raw material like coking coal offers remain stable following steep fall last week. Meanwhile iron ore prices edged up amid restocking by Chinese mills ahead holidays.
According to Chinese customs nation’s finished steel exports plunged by 8% Y-o-Y to 69.47 MnT in CY18 as compared to 75.41 MnT in CY17. However on monthly basis, China’s steel exports was higher by 6% to 5.556 MnT in Dec’18 in contrast to 5.25 MnT in Nov’18.
As per reports, Chinese based major steelmaker Baosteel has raised HRC and CRC prices by RMB 50/MT (USD 7) for March deliveries.
Chinese spot iron ore prices edge up towards weekend- Chinese spot iron ore prices opened up this week at USD 74.8/MT, CFR China and stood almost stable before increasing to USD 75.95/MT towards the weekend amid restocking by mills ahead holidays and hike in futures. The Iron ore inventory at Chinese major ports increased to 143.7 MnT up by 1.9 MnT on weekly basis, as per Mysteel data.
However, during the week the prices witnessed surge owing to supply disruption at Australian miner Rio Tinto, declaring Force majeure.
Spot lump premium witnessed fall W–o-W at USD 0.3500 /DMTU as against USD 0.3600/DMTU a week ago. Lump still remains a cost effective alternative to pellet for Chinese mills.
Spot pellet premium inch down by USD 2.10/MT this week- Spot pellet premium for Fe 65% grade pellets assessed at USD 39.5/DMT, CFR China this week, down against USD 41.6/DMT a week before. Pellet premium dropped amid weak demand and rising port stocks.
China iron ore imports decline marginally in CY18- According to General Administration of Customs. China recorded iron ore imports at 1,064.3 MnT in CY18, dropped marginally by 1% against CY17 imports at 1,075 MnT. The fall is first annual drop since 2010. The monthly imports have recorded slight increase in Dec’18 to 86.65 MnT as against Nov’18 imports at 86.25 MnT.
Coking coal prices remained stable after steep drop last week- Seaborne premium-grade coking coal prices remained stable this week post after falling by USD 10/MT last week.
Amid excess supply of international cargoes ahead of Chinese new Year festival season trading remains sluggish which affects coking coal prices from Australia.
Thus,premium HCC coking coal prices are heard around USD 192/MT FoB Australia. However last week coking coal prices was at USD 201/MT FoB basis.
Chinese domestic billet prices fall marginally- Domestic billet prices in China’s Tangshan for 150*150mm closed this week at RMB 3,380/MT, lower by RMB 40/MT against last week’s close. Spot transactions weakened.
Chinese HRC export offers inch up in the beginning of the week- Chinese HRC exports offers inch up in line with uptrend in Chinese currency yuan and strong futures in nation’s domestic market.
Currently nation’s HRC export offers stood around USD 480-490/MT FoB basis. However previously export offers was in the range of USD 475-480/MT FoB basis. Also major mills are also offering HRC at around USD 490/MT FoB basis as steelmakers are not in a mood to decline the prices over stronger Yuan.
Meanwhile prices in domestic market is around RMB 3,630-340/MT (ex-works) in Eastern China which started increasing in the beginning of the week amid rising yuan. However the same remained largely stable by the weekend. Also, market participants are expecting stability in steel price ahead of Chinese new Year holidays scheduled in the month of February.
Chinese re-bar export offers up on weekly basis - Nation’s re-bar export offers edges up on weekly basis over increase in Chinese currency Yuan and slight rebound of demand in domestic market.
Currently, nation’s rebar export offers are at USD 480-490/MT FoB China.Last week rebar export offers was assessed at USD 465-470/MT FoB basis.
Domestic rebar prices is assessed at RMB 3,670-3700/MT in (Eastern China).However in the beginning of the week prices was in range of RMB 3,700-3,750/MT (ex-works) in Eastern China.