Ex-China steel plate export prices have edged down slightly over the past week despite firm domestic plate market and slight gains in futures HRC prices.
Specifically, mainstream ex-China steel plate offer prices from mills have been heard at $525-535/mt FOB for July shipment as of Monday, May 25, down $5/mt on average compared to May 18. Besides, the reference deal prices have been heard at $520-525/mt FOB to South America, Africa and the Middle East, decreasing by $5/mt on average compared to May 18.
During the given week, steel plate prices in the Chinese domestic market have fluctuated within a limited range. Steel plate producers’ capacity utilization rates have been steady, while the supply of common steel plate has been suppressed due to higher production of specialized steel plates for shipbuilding and wind power. Since the traditional offseason is approaching, downstream users basically concluded purchases as needed, exerting a negative impact on steel plate prices. However, due to the gas explosion accident on May 22 in Qinyuan County, Changzhi City, Shanxi Province, 73 coal mines across Shanxi Province have suspended production, and all 25 coal mines in Qinyuan County, with an annual capacity of 25.6 million mt, have been completely shut down. On Monday, May 25, coking coal and coke futures prices have indicated sharp increases of 7.97 percent and 7.99 percent, positively affecting HRC futures prices. It is thought that steel plate prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 20 mm Q235 20 steel plate spot prices in China have gained RMB 3/mt ($0.4/mt) compared to May 18, standing at RMB 3,577/mt ($523/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,432/mt ($502/mt), increasing by RMB 3/mt ($0.4/mt) or 0.09 percent since May 18, while increasing by 1.39 percent compared to the previous trading day, May 22.
$1 = RMB 6.8318
