Mainstream ex-China steel plate offer prices from mills have been heard at $860-875/mt FOB for June shipment as of today, Monday, April 26, moving up by $7.5/mt on average compared to April 19, while steelmakers will have to bear the risks of the awaited tax rebate cut.
Buyers from overseas markets have been expecting a cut in the export tax rebate from 13 percent to zero, and so deal prices have been heard at $865-870/mt FOB, up from $850/mt FOB a week ago. Buyers from South America, the Middle East and Southeast Asia have been quite active in the market.
At the same time, in the local market, demand for steel plate from the shipbuilding and construction industries has been good, which will bolster export prices in the near future. During the given week, steel plate prices in the Chinese domestic market have indicated big rises amid increasing HRC futures prices. At the same time, the relatively low inventory has provided support for steel plate prices. Bullish sentiments have prevailed among market players. It is thought that steel plate prices in the Chinese domestic market will likely edge up in the coming week.
Average Q235 20 mm steel plate spot prices in China have gained RMB 116/mt ($18/mt) week on week to RMB 5,636/mt ($868/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 26, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,737/mt ($884/mt), increasing by RMB 367/mt ($56.5/mt) or 6.83 percent since April 19.
$1 = RMB 6.4913
