Chinese Steel Market Highlights: Week 45, 2018

According to Mining News Pro -This week Chinese steel market observed decline in steel prices in domestic as well as overseas market. However spot iron ore fines price moved up on supply concerns amid rail derailments.

China recorded iron ore imports at 88.4 MnT. Imports hit 4-month low. On monthly basis, China iron ore imports were down by 5% compared to 93.08 MnT in Sept’18.

According to the recent data released by General Administration of customs, Chinese finished steel exports dropped by 8% M-o-M in Oct`18 to 5.5 MnT as compared to 5.95 MnT in Sept`18. Chinese steel export volumes have hit 8-month low as in Feb`18 export volumes were at 4.85 MnT.Chinese flat steel export prices dropped sharply amid low bids from overseas buyers. Competitive offers from Russia and Turkey resulted in decline in Chinese flat steel export offers.

Spot iron ore fines price increase - Seaborne iron ore prices increased sharply amid fears of tightening supply over train derailment at Australia’s BHP Billiton. Fe 62% iron ore fines which was at USD 75.8/MT, CFR China in beginning of the week, rose to USD 77.25/MT, CFR China.

Spot lump premium edged up to USD 0.35/DMTU, CFR China

Spot pellet premium plunge further - Spot pellet premium for Fe 65% grade pellets assessed at USD 63.85/DMT, CFR China this week, down by USD 7.5/DMT W-o-W against USD 71.35/DMT a week before. Increased supply of domestic pellets in China has turned out to be a major competitor of imported pellets resulting in falling spot pellet premium.

Coking coal prices remain range bound - Coking coal prices remained range bound amid limited trade activities. Assessment for Premium HCC is around USD 217.5/MT, FoB Australia.

Chinese HRC export offers slide further - Chinese HRC export offers is persistently showing downtrend over sluggish buying in export market.Meanwhile thin trades in domestic market is collectively pulling down steel prices from China.

Currently HRC export offers from China is assessed around USD 525-530/MT FoB basis.

Domestic HRC prices witness decline by RMB 130/MT on weekly basis and are hovering at at RMB 3,900-3,930/MT (ex-works) in Eastern China.

Chinese Re-bar export offers move down - Nation’s re-bar export offers inch down this week since domestic rebar prices remain range bound.

Currently, nation’s re-bar export offers are at USD 575/MT FoB China.Last week rebar export offers was assessed at USD 575-580/MT FoB basis.

Domestic rebar prices fell by RMB 150/MT on weekly basis and is assessed at RMB 4,480-4,520/MT in (Eastern China).