Mainstream ex-China steel plate offer prices from mills have been heard at $580-590/mt FOB for February shipment as of today, Monday, January 8, remaining stable on average as compared to December 25. The reference deal prices have been heard at $575-580/mt FOB to South America, Africa and the Middle East, increasing by $5/mt over the past two weeks.
However, an increase was mainly seen in the first days of January, while since late last week sentiments have worsened, following the drop in futures prices and given the weak demand both locally and abroad.
During the given week, steel plate prices in the Chinese domestic market have indicated slight declines amid the decreases in coke prices and steelmakers’ weaker profitability. Both supply and demand in the steel plate market will remain at low levels, which will affect prices in the near future. Construction activities at many construction sites will gradually slow down, which will slacken the demand for steel plate. At the same time, traders have been unwilling to build up stocks at the current time, which will also exert a negative impact on steel plate prices. It is thought that steel plate prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Average Q235 20 mm steel plate spot prices in China have lost RMB 4/mt ($0.6/mt) compared to December 25, standing at RMB 4,113/mt ($579/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,051/mt ($571/mt), decreasing by RMB 79/mt ($11.1/mt) or 1.9 percent since December 25, while down 1.34 percent compared to the previous trading day (January 5).
$1 = RMB 7.1006