Ex-China steel plate prices have increased by at least $10/mt over the past week, supported by a rebound in local Chinese plate prices, despite persistently weak demand. The uptrend was primarily driven by a significant rally in Chinese HRC futures prices, sparked by market optimism around potential production cuts at major mills.
Mainstream ex-China steel plate offer prices from mills have been heard at $485-490/mt FOB for August shipment as of today, Monday, July 21, moving up by $10/mt on average as compared to July 14. The reference deal prices have been heard at $485/mt FOB to South America, Africa and the Middle East, also increasing by $10/mt on average compared to July 14.
During the given week, steel plate prices in the Chinese domestic market have moved up amid increasing HRC futures prices. However, demand for steel plate has been slack due to high temperatures and heavy rains in some regions of China, weakening the support for prices. Recently, several government departments in China have called for excessive competition to be curbed, exerting a positive impact on market sentiments. It is expected that steel plate prices in the Chinese domestic market will edge up in the coming week.
Average 20 mm Q235 steel plate spot prices in China have gained RMB 103/mt ($14.4/mt) compared to July 14, standing at RMB 3,493/mt ($488.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,394/mt ($475/mt), increasing by RMB 118/mt ($16.5/mt) or 3.6 percent since July 14, while up 2.2 percent compared to the previous trading day, June 18.
$1 = RMB 7.1522