Mainstream ex-China steel plate offer prices from mills have been heard at $550-570/mt FOB for August shipment as of today, Monday, June 3, remaining stable on average as compared to May 27. The reference deal prices have been heard at $550-555/mt FOB to South America, Africa and the Middle East, also moving sideways on average compared to May 27.
During the given week, steel plate prices in the Chinese domestic market have seen decreases amid relatively high production. Inventory of steel plate has been at high levels, exerting a negative impact on prices. June is the traditional offseason for the steel industry, with demand expected to be slack, which will negatively affect steel plate prices. In addition, iron ore prices moved down sharply on June 3, which will weaken the support for steel plate prices from the cost side. Moreover, HRC futures prices have moved down, resulting in the erosion of market confidence. It is thought that steel plate prices in the Chinese domestic market will likely move sideways in the coming week.
Average Q235 20 mm steel plate spot prices in China have lost RMB 40/mt ($5.6/mt) compared to May 27, standing at RMB 3,877/mt ($546/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 3, HRC futures at Shanghai Futures Exchange are standing at RMB 3,800/mt ($535/mt), decreasing by RMB 78/mt ($11/mt) or 2.0 percent since May 27, while down 1.04 percent compared to the previous trading day, May 31.
$1 = RMB 7.1086
