Export prices for Chinese steel plate have edged down slightly over the past week, amid decreases in domestic steel plate and HRC futures prices. At the same time, market participants consider that downstream users’ stock replenishments have not been as good as expected, weakening market sentiments to a certain degree.
Specifically, mainstream ex-China steel plate offer prices from mills have been heard at $485-500/mt FOB for November shipment as of today, Monday, September 29, decreasing by $5/mt on average week on week. Besides, the reference deal prices have been heard at $480-495/mt FOB to South America, Africa and the Middle East, decreasing by $5/mt on average compared to September 22.
During the given week, steel plate prices in the Chinese domestic market have declined amid the prevailing cautious sentiments among market players. HRC futures prices have moved down, exerting a negative impact on steel plate prices. Moreover, market players think demand for steel plate may remain slack after the National Day holiday (October 1-8), while inventories may rise, which will weaken the support for steel plate prices. Furthermore, traders in the steel plate market have come under strong pressure from tight liquidity approaching the end of the month. It is expected that steel plate prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Average 20 mm Q235 20 steel plate spot prices in China have lost RMB 30/mt ($4.2/mt) compared to September 22, standing at RMB 3,483/mt ($491/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 29, HRC futures at Shanghai Futures Exchange are standing at RMB 3,289/mt ($463/mt), decreasing by RMB 91/mt ($12.8/mt) or 2.7 percent since September 22, while down 1.23 percent compared to the previous trading day, September 26.
$1 = RMB 7.1089
