Mainstream ex-China steel plate offer prices from mills have mostly been heard at $525-535/mt FOB for late November shipment as of today, Monday, September 7, moving up by $5/mt on average week on week, amid the high levels of iron ore prices, the appreciation of the Chinese currency and the increasing trend in the local market.
Reference deal prices have increased to $515-520/mt FOB, for small volumes to South America and Southeast Asia, up by $7.5/mt on average over the past week. However, most buyers from overseas markets have not accepted the rises from Chinese exporters, resulting in slack transaction activities.
Firm demand in the local market has provided support for ex-China steel plate prices. During the given week, following the rises in steel plate prices, downstream users in the local Chinese market were unwilling to conclude purchases. Meanwhile, inventories have declines, resulting in a supply shortage for some specifications, bolstering steel plate prices to some extent. It is thought that steel plate prices in the Chinese domestic market will edge up in the coming week, following the rises in costs.
Average Q235 20 mm steel plate spot prices in China have edged up by RMB 10/mt ($1.5/mt) week on week to RMB 4,006/mt ($585.7/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,011/mt ($584.7/mt), decreasing by RMB 147/mt ($21.5/mt) or 3.7 percent since August 31.
$1 = RMB 6.8386
