Mainstream ex-China steel plate offer prices from mills have mostly been heard at $670-680/mt FOB for March shipment as of today, Monday, January 4, moving down by $5/mt on average week on week. Though neither sellers nor buyers have been active recently due to uncertainty as regards the future market trend, the high levels of iron ore prices have provided support.
Due to the New Year holiday, most steelmakers did not give firm offers. Since iron ore prices have been at high levels, steelmakers are optimistic as regards the future prospects for the steel plate market. It is thought that ex-China steel plate prices may bottom up in the coming week.
Reference deal prices have been heard at $665-670/mt FOB to Southeast Asia and South America, moving sideways on average from the previous week.
During the given week, steel plate prices have declined amid decreasing HRC futures prices and the New Year holiday. Meanwhile, another round of extremely cold weather is going to hit China, exerting a negative impact on the steel plate market. However, inventory of steel plate has been at relatively low levels, bolstering prices. It is thought that steel plate prices in the Chinese domestic market may move sideways in the coming week.
Average Q235 20 mm steel plate spot prices in China have lost RMB 70/mt ($11/mt) week on week to RMB 4,593/mt ($702/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 4, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,492/mt ($687/mt), decreasing by RMB 250/mt ($38/mt) or 5.3 percent since December 28.
$1 = RMB 6.5408
