Mainstream ex-China steel plate offer prices from mills have mostly been heard at $525-530/mt FOB as of today, Monday, September 21, moving down by $5/mt from the upper end week on week, amid the negative impact of decreasing futures prices on sales activities in the local steel plate market.
Reference deal prices have been heard at $515/mt FOB, to South America and Southeast Asia, versus $515-520/mt FOB recorded in the previous week. Though the appreciation of the Chinese currency has bolstered ex-China steel plate offer prices, market players’ sentiments have been bearish due to the continuous decline in futures prices. Meanwhile, the approaching long National Day holiday (October 1-8) will lead to the suspension of trading activities in the local market, which will exert a negative impact on steel plate export prices.
During the given week, domestic steel plate prices in China have declined slightly amid decreasing futures prices and the prevailing bearish sentiments. Most traders have decided to sell at lower prices to ease financial pressure nearer the end of the month. Currently, inventory levels in the steel plate market are relatively low, which will provide support for steel plate prices. It is expected that steel plate prices in the Chinese market will fluctuate within a limited range in the coming week.
Average Q235 20 mm steel plate spot prices in China have edged down by RMB 23/mt ($3.4/mt) week on week to RMB 3,963/mt ($586/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 21, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,661/mt ($553.5/mt), decreasing by RMB 125/mt ($18.5/mt) or 3.3 percent since September 14.
$1 = RMB 6.7595
