Mainstream ex-China steel plate offer prices from mills have been heard at $470-490/mt FOB for late August shipment as of today, Monday, June 22, moving down by $5/mt on average week on week. A small volume of steel plate has been sold at $470-480/mt FOB to South America, while a week ago the contract price was at $480/mt FOB.
Buyers in Southeast Asia have been seeking to purchase steel plate from sources other than China, as ex-Japan and ex-South Korea steel plate prices have been more competitive in the export markets – at $20-30/mt lower than ex-China plate.
Despite low demand in the export market for Chinese plates, Chinese producers will be supported by the firm demand in the local market in China and are unlikely to cut prices significantly again, following the latest slight declines.
During the given week, the high levels of iron ore prices have bolstered Chinese steelmakers’ steel plate prices. However, rainy weather and floods in eastern and southern China have negatively affected demand. Meanwhile, steel plate inventories have been at relatively low levels, which will exert a positive impact on prices.
Average Q235 20 mm steel plate spot prices in China have edged up by RMB 13/mt ($1.8/mt) week on week to RMB 3,853/mt ($543.7/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 22, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,533/mt ($498.3/mt), increasing by RMB 98/mt ($13.8/mt) or 2.8 percent since June 15.
$1 = RMB 7.0865
