Ex-China steel plate export prices have edged down over the past week due to the needs of sellers to push volumes in order to reduce their stocks, while in the local market prices have been rather stable, though demand has been poor due to seasonal factors.
Specifically, mainstream ex-China steel plate offer prices from big mills have been heard at $515-530/mt FOB as of today, Monday, July 13, down $5-10/mt on average compared to July 6. Besides, the reference deal prices have been heard at $510-520/mt FOB to South America, Africa and the Middle East, decreasing also by $5-10/mt week on week.
During the given week, steel plate prices in the Chinese domestic market have fluctuated within a limited range some producers implemented maintenance works, resulting in decreasing capacity utilization rates and limiting the supply to the spot market, which has bolstered prices to a certain degree. However, since the output reduction was limited, the oversupply continues to be seen. Meanwhile, high temperatures and rainy weather have negatively affected transportation, slowing down the circulation of supplies in the steel plate market. Currently, cautious sentiments prevail among market players, and so they have chosen to sell at lower prices. Following Typhoon Bavi, Typhoon Haishen is forming, which will exert a negative impact on the steel plate market in the near future due to anticipated heavy rainfall. It is thought that steel plate prices in the Chinese domestic market will soften in the coming week.
Average 20 mm Q235 20 steel plate spot prices in China have moved sideways compared to July 6, standing at RMB 3,467/mt ($510/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,272/mt ($481/mt), decreasing by RMB 17/mt ($2.5/mt) or 0.5 percent since July 6, while down 0.64 percent compared to the previous trading day, July 10.
$1 = RMB 6.7972
