Ex-China steel plate export prices have moved sideways over the past week since, even though local quotations have posted some declines and demand has been rather weak, market sources have been waiting for more signals from the market.
Specifically, mainstream ex-China steel plate offer prices from mills have been heard at $525-535/mt FOB for July shipment as of today, Monday, June 1, remaining stable on average compared to May 25. Besides, the reference deal prices have been heard at $520-525/mt FOB to South America, Africa and the Middle East.
During the given week, steel plate prices in the Chinese domestic market have edged down amid sufficient supply due to increasing capacity utilization rates on the steelmakers’ side. Demand for steel plate from downstream users has been weak, resulting in decreasing transaction activities. The widespread rainy weather in southern China has negatively affected construction activities, exerting a negative impact on the steel plate market.
However, on Monday, June 1, steel futures posted some rebound, while inspections at coking coal mines in Shaanxi Province again triggered a rise in coal and coke futures prices. So, it is thought that steel plate prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 20 mm Q235 20 steel plate spot prices in China have lost RMB 33/mt ($4.8/mt) compared to May 25, standing at RMB 3,543/mt ($519.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 1, HRC futures at Shanghai Futures Exchange are standing at RMB 3,400/mt ($498.5/mt), decreasing by RMB 32/mt ($4.7/mt) or 0.9 percent since May 25, while increasing by 0.65 percent compared to the previous trading day, May 29.
$1 = RMB 6.8167
