Mainstream ex-China steel plate offer prices from mills have been heard at $640/mt FOB for March shipment as of today, Monday, January 9, moving up by $40/mt compared to December 26. The latest increase has been based mainly on expectations of better demand ahead of the Chinese New Year.
Reference deal prices from sellers have been heard at $630/mt FOB to South America and Southeast Asia, moving up from $590-595/mt FOB two weeks ago and $600/mt FOB a week ago. However, the current level seems too high for customers to accept quickly and buyers assess the current tradable level from their side at $610-620/mt FOB at the highest.
During the given week, steel plate prices in the Chinese domestic market have moved on an overall uptrend amid the increasing trend of HRC futures prices. Downstream users have been more willing to build up stocks as the Chinese New Year holiday (January 21-27) is approaching, and this has been exerting a positive impact on steel plate prices. Meanwhile, raw material prices have been firm, bolstering steel plate prices from the cost side. However, traders are quite cautious as regards the future prospects for the steel plate market as demand may remain slack, while market players may be unwilling to maintain high inventory levels. It is expected that steel plate prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average Q235 20 mm steel plate spot prices in China have gained RMB 60/mt ($8.8/mt) compared to December 26, standing at RMB 4,203/mt ($615.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 9, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,146/mt ($607/mt), increasing by RMB 98/mt ($14.3/mt) or 2.42 percent since December 26.
$1 = RMB 6.8265
