Mainstream ex-China steel plate offer prices from mills have been heard at $940-950/mt FOB for June shipment as of today, Monday, May 10, moving up by $77.5/mt on average compared to April 26 as the local market has showed sharp rises after the Labor Day holiday and as the supply-demand balance will remain tight in the coming period.
The expected production restrictions, decreasing inventory and the peak season for steel plate in the local market have all positively affected ex-China steel plate offer prices. Ferrous metal futures prices in China have indicated big rises on May 10, which may result in further increases in steel plate export offer prices in the coming period.
During the given week, local steel plate prices have risen sharply amid surging HRC and iron ore futures prices. Bullish sentiments prevail among market players, while inventory of steel plate has been at relatively low levels, and so sellers have bolstered their offer prices.
Average Q235 20 mm steel plate spot prices in China have gained RMB 804/mt ($125/mt) week on week to RMB 6,440/mt ($1,000/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 6,335/mt ($983/mt), increasing by RMB 358/mt ($55.6/mt) or 5.99 percent (hitting the maximum daily limit) since May 7.
$1 = RMB 6.4425
