Mainstream ex-China steel plate offer prices from mills have been heard at $470-490/mt FOB for late May shipment as of today, Monday, March 30, moving sideways on average week on week. The tradable value is still at $460-470/mt FOB, in line with the previous deals. Though the severe coronavirus pandemic worldwide has exerted a negative impact on the export market, the solid demand from the local Chinese market due to support from infrastructure construction has bolstered ex-China steel plate prices to some extent.
During the given week, inventories of steel plate in the Chinese market have edged down, though remaining at relatively high levels. Market players have chosen to sell at lower prices to stimulate activities. Average Q235 20 mm steel plate spot prices in China have edged down by RMB 13/mt ($1.8/mt) week on week to RMB 3,660/mt ($519.5/mt) ex-warehouse, according to SteelOrbis’ information.
At the same time, there has been a rumor about a low-priced deal from South Korea to China. Some sources said it was done “far below $450/mt” CFR. Sources said that demand for steel plate from wind power generation has been good in the local market, which together with the reviving construction sector has attracted steel plate sellers.
As of March 30, HRC futures at the Shanghai Future Exchange are standing at RMB 3,079/mt ($437/mt), decreasing by RMB 178/mt ($25/mt) or 5.5 percent since March 23.
$1 = RMB 7.0447
