IRON and STEEL
This week Chinese steel prices exhibited bearish market sentiments as the news of easing production cuts in Tangshan region will remain till end Jul’19. This resulted to slight fall in steel prices in China.
However on the other hand nation’s HRC and Rebar export offers moved up. Iron ore prices declined towards the weekend on bearish sentiments and selling pressure. However coking coal offers witnessed further decline over weak buying interest from China.
Chinese spot iron ore prices declined towards weekend- Chinese spot iron ore prices opened up this week at USD 121.20/MT, and dropped to USD 114.25/MT, CFR China, towards weekend.
Iron ore prices fell owing to rise in selling pressure with major iron ore miners to offload cargoes along with fall in steel prices in China's domestic market.
As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports picked up to 115.60 MnT as compared to 115.25 MnT a week ago.
Spot lump premium rises week-on-week- Spot lump premium this week picked up to USD 0.4118/DMTU as compared to 0.3400/DMTU, assessed last week. Chinese steel mills preference for lumps is reduced amid high prices and availability of comparatively less expensive pellets.
Spot pellet premium fell week on week- Spot pellet premium for Fe 65% grade pellets assessed at USD 20.96/MT,CFR China as against USD 23.25/MT CFR China a week ago. Pellet inventory at major Chinese ports remains stable W-o-W at 5.05 MnT.
Coking coal offers fell over low buying from China- Seaborne premium low-volatile hard coking coal prices have fallen further this week amid weak buying interest from China.
The steelmakers in China are booking the material cautiously amid possibilities of ad-hoc production cuts in H2 2019.
Meanwhile, with the onset of monsoon season buying from India will remain subdued.
Latest offer for the Premium HCC grade is assessed at around USD 189.75/MT FoB Australia against USD 195/MT FoB Australia.
China domestic billet prices stand still- This week Chinese domestic billet prices settled at RMB 3,620/MT. Chinese domestic billet prices in Tangshan moved up towards the beginning of this week to RMB 3,670/MT including VAT however towards end of the week, prices declined on weaker market sentiments.
Chinese HRC export edges up further- Chinese HRC export offers increased further by USD 10/MT amid announced production cuts in Tangshan region. Also resumption in trade talks between USA and China has lead to positivity in market sentiments in China.
Currently nation’s HRC export offer surged by USD 10-15/MT W-o-W basis and stands at USD 510-520/MT FoB basis against USD 500-505/MT FoB basis in preceding week.
On weekly basis domestic HRC prices in China stood at RMB 3,880-3,900/MT in eastern China (Shanghai) this week; slide down by RMB 40/MT which was RMB 3,920-3,940/MT in eastern China (Shanghai) in previous week.
Chinese rebar export offers moved up on weekly basis- This week nation’s rebar export offers moved up on weekly basis despite fall in domestic prices.
Currently nation’s rebar export offers registered at USD 518-522/MT FoB China moved up by USD 10-11/MT against previous week. Last week the offers were at USD 507-512/MT FoB basis.
However competitive offers from other exporting nations lead to thin trades in rebar export market.
Meanwhile domestic rebar prices stood at RMB 3,970-4,000/MT (Eastern China) declined by RMB 60-70/MT which was RMB 3,960-4,000/MT (Eastern China) in last week. Higher inventory levels kept domestic rebar prices largely stable.