China Ferrous Market Weekly Wrap Up - April 16, 2024
Mysteel Global
Latest updates on steel&iron ore, coke&coal, base metals, battery materials, energy&chemicals, decarbonization path.
WEEKLY: Fundamentals to support iron ore price rebound
After their impressive rebound last week, imported iron ore prices in China will likely receive additional support this week from the gradual uptick in domestic steel consumption and steelmakers' hot metal output, market sources suggested.
Spot iron ore prices firmed last week, primarily driven by a marked technical rebound in Chinese futures of the commodity, Mysteel Global noted.
WEEKLY: Demand buoys China's imported coking coal prices
Prices for imported coking coal in China for both seaborne cargoes and Mongolian coal delivered overland showed some signs of improvement during April 8-12, mainly spurred by the revival in buying interest among Chinese steelmakers, market sources observed.
By April 12 for example, the price of Russian Inagli fat coal had increased by Yuan 80/tonne ($11/t) on week to Yuan 1,500/t. As of the same day, the price of Russian Elga fat coal had also risen by Yuan 20/t to Yuan 1,250/t, both on ex-warehouse basis at North China's Jingtang port and including the 13% VAT, according to Mysteel's database.
WEEKLY: Chinese coke plants' coke stocks at 2-month low
The total stocks of metallurgical coke at the 230 Chinese independent coking plants under Mysteel's tracking declined for the second consecutive week during April 5-11, with the total lower by 56,600 tonnes or 8.9% on week at 577,100 tonnes, a new low since mid-February this year, according to Mysteel's latest survey.
Accounting for much of this decline was the fact that over the survey week, domestic steelmakers increased their coke purchases as more mills ramped up production in response to the recent uptick in finished steel prices and the parallel improvement in their profit margins, industry sources said.
WEEKLY: China steel scrap prices rise further, stocks fall
The upward momentum in Chinese steel scrap prices remained steady during the past week, as the availability of scrap materials in the domestic market tightened further, Mysteel's latest survey showed.
As of April 12, Mysteel's national steel scrap price index stood at Yuan 2,825.3/tonne ($397.8/t) including the 13% VAT, gaining Yuan 50.5/t from April 3.
WEEKLY SUMMARY: China's major steel prices gain ground
领英推荐
China's prices of major steel products reversed up over April 8-12 thanks to the improved sentiment in domestic market and the recovery in demand from downstream users, Mysteel Global learned.
WEEKLY: China's rebar output reverses down 1.3%
After a brief rebound a week earlier, rebar production among the 137 Chinese steelmakers monitored by Mysteel declined by 1.3% or 26,800 tonnes on week to 2.1 million tonnes over April 4-10, according to the latest survey results.
Survey respondents suggested that rebar output among steel mills in Southwest and Northeast China decreased significantly due to their maintenance on rolling lines, while some mills in East China also posted an on-week drop in their rebar output as they had switched to producing billets.
WEEKLY: China's HRC output dips by 1.3% on week
Output of hot-rolled coils (HRC) among 37 Chinese flat steel producers Mysteel regularly monitors reversed down last week from the rises of the five previous weeks, declining 42,600 tonnes or 1.3% on week during April 8-12 to total 3.21 million tonnes, Mysteel'slatest weekly production survey shows.
The hot-rolling capacity utilization rate among the 37 mills also?ended the prior five?weeks of gains to?average?82.09%?last week,?lower by 1.09?percentage points on week, the survey found.
WEEKLY: Tangshan billet producers finally earn profits
The price of Q235 150mm square billet under Mysteel's assessment in Tangshan in North China's Hebei province, the country's largest steel production hub, ticked up by Yuan 130/tonne ($18/t) on week to reach Yuan 3,410/t EXW and including the 13% VAT as of April 14. The large rise in billet prices reflected the strengthening of ferrous futures prices last week which caused steel market sentiment to improve, according to the weekly survey.
The price rise in the semis helped local steelmakers restore their profit margins after their persistent losses. The average profit on billet sales enjoyed by the ten integrated steel mills in Tangshan under Mysteel's tracking stood at Yuan 132/t on April 12, as against the Yuan 35/t loss in the prior week.
Follow Mysteel Global on LinkedIn to get exclusive updates on the Chinese commodities market, tailored specifically for industry peers.
Your experiential journey connecting your gateway to the Chinese commodity industry starts at www.mysteel.net.
Find out how Mysteel products & services can help grow your outreach and visibility: online subscriptions, reports & analysis, data products, and consulting.
If you would like to know more about the rationale behind price trends, and the monthly/quarterly outlook by product, contact us at [email protected]