Mainstream ex-China steel plate offer prices from mills have mostly been heard at $670-690/mt FOB for March shipment as of today, Monday, December 28, moving up by $60-70/mt on average week on week amid the high levels of iron ore prices and the strong local market. However, the declining trend in prices of other flat steel products may drag down steel mills’ plate offer prices in the near future.
Deal price levels have been heard at $665-670/mt FOB to Southeast Asia and South America, moving up by $55-60/mt on average from the previous week. Most buyers in overseas markets have already completed their purchases ahead of the Christmas and New Year holidays, which will likely exert a negative impact on ex-China steel plate offer prices.
During the given week, HRC futures prices moved up first, while edging down later, affecting local steel plate prices. Market participants have started to be cautious as regards the future prospects for the steel plate market. Meanwhile, the approaching cold weather will exert a negative impact on the steel plate market. However, the relatively low inventory levels will likely bolster steel plate prices to some extent.
Average Q235 20 mm steel plate spot prices in China have lost RMB 157/mt ($24/mt) week on week to RMB 4,663/mt ($715/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 28, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,418/mt ($677/mt), decreasing by RMB 324/mt ($50/mt) or 6.8 percent since December 21.
$1 = RMB 6.5236
