Following the sharp increase in ex-China steel plate prices last week, this week most offers have continued to increase amid higher local plate prices and HRC futures prices in China, though at a slower pace.
Specifically, mainstream ex-China steel plate offer prices from mills have been heard at $490-495/mt FOB for September shipment as of today, Monday, July 28, edging up by $5/mt on average as compared to July 21. The reference deal prices have been heard at $490/mt FOB to South America, Africa and the Middle East, also increasing by $5/mt on average compared to July 21.
During the given week, steel plate prices in the Chinese domestic market have seen increases amid rising HRC futures prices and improved market sentiments due to the Chinese government urging the curbing of excessive competition in the steel sector. However, demand for steel plate has been slack due to the heavy rains in northern China and frequent rainy days in eastern China caused by typhoon CO-MAY. Transaction activities for steel plate have been insufficient due to traders’ cautious sentiments. It is expected that steel plate prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average Q235 20 mm steel plate spot prices in China have gained RMB 20/mt ($2.8/mt) compared to July 21, standing at RMB 3,513/mt ($492/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,397/mt ($476/mt), increasing by RMB 3/mt ($0.4/mt) since July 21, while down 2.3 percent compared to the previous trading day, June 25.
$1 = RMB 7.1467
