Ex-China steel plate export prices have remained stable over the past week with only small declines seen in the local market. But in some outlets, buyers have seen discounts of up to $10/mt, reflecting bearish market conditions.
Specifically, mainstream ex-China steel plate offer prices from big mills have been heard at $525-535/mt FOB as of today, Monday, June 22, moving sideways on average compared to June 15. Besides, the reference deal prices have been heard at $520-525/mt FOB to South America, Africa and the Middle East.
However, in Southeast Asia, offers for Q235B plates have been heard at $545/mt CFR to Vietnam, which is just $10/mt lower than a week before. “Traders are trying to attract buyers here, so they have to cut prices,” a Vietnam-based source said.
During the given week, steel plate prices in the Chinese domestic market have edged down amid stable capacity utilization rates on producers’ side. Currently, due to the traditional off-season, the demand for steel plate from downstream users is slack, resulting in rare stock replenishment and weakening the support for prices. The widespread rainy weather and high temperatures in China have exerted a negative impact on construction activities, dampening demand for steel plate. Demand is unlikely to improve in the near future. It is expected that steel plate in the Chinese domestic market will edge down further in the coming week.
Average 20 mm Q235 20 steel plate spot prices in China have lost RMB 27/mt ($4/mt) compared to June 15, standing at RMB 3,503/mt ($514/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,338/mt ($490/mt), decreasing by RMB 59/mt ($8.7/mt) or 1.7 percent since June 15, while down 0.39 percent compared to the previous trading day, June 18.
$1 = RMB 6.815
