Due to decreasing inventory caused by mills’ production cuts, the ex-China steel plate price range has widened to $465-490/mt FOB as of today, Monday, December 16, against $465-485/mt FOB last week.
In particular, offers from northern Chinese mills are at $470-475/mt FOB, while buyers have been bidding at $465-470/mt FOB. Nevertheless, offers from southern mills have been higher, at up to $490/mt FOB.
During the given week, Chinese steelmakers have cut their production of steel plate, resulting in a tight supply and relatively low inventory in the market, which has boosted prices. Average Q235 20 mm steel plate spot prices in China have risen by RMB 43/mt ($6.2/mt) week on week to RMB 3,890/mt ($556.5/mt) ex-warehouse, according to SteelOrbis’ information.
At the same time, overall sentiments in the flat steel market in China have remained bearish. As of December 16, HRC futures at the Shanghai Future Exchange are standing at RMB 3,523/mt ($532.3/mt), decreasing by RMB 154/mt ($22/mt) or 4.2 percent since December 9.