Mainstream ex-China steel plate offer prices from mills have mostly been heard at $570-590/mt FOB for February shipment as of today, Monday, December 14, moving up by $17.5/mt on average week on week amid surging iron ore prices and the rising trend in local steel plate prices.
Currently, buyers in overseas markets have started to be reluctant to accept the rapidly rising export prices, and this will likely slow down the rising pace of ex-China steel plate prices in the coming period. However, on the other hand, ex-China HRC prices have risen further, which will support ex-China steel plate prices.
Deal prices have been heard at $580-585/mt FOB to Southeast Asia, moving up by $25/mt on average from the previous week.
During the given week, steel plate prices in the Chinese domestic market have moved up sharply amid increasing HRC futures prices and surging iron ore prices. However, downstream users have mostly held a wait-and-see stance as regards the future prospects for the market, though relatively low inventory levels have bolstered steel plate prices. Following sharp rises, on December 14 iron ore futures prices at Dalian Commodity Exchange (DCE) edged down by 3.21 percent compared to the previous trading day, and HRC futures prices at Shanghai Futures Exchange (SHFE) declined by 1.77 percent, indicating that bearish sentiments have started to prevail among market players, which may negatively affect the future steel market.
Average Q235 20 mm steel plate spot prices in China have edged up by RMB 213/mt ($32.6/mt) week on week to RMB 4,366/mt ($668/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,317/mt ($660.5/mt), decreasing by RMB 18/mt ($2.8/mt) or 0.4 percent since December 7.
$1 = RMB 6.5361
