China Ferrous Market Weekly Wrap Up - May 7, 2024
Mysteel Global
Latest updates on steel&iron ore, coke&coal, base metals, battery materials, energy&chemicals, decarbonization path.
WEEKLY: China iron ore prices to rise on firm demand
Chinese prices for imported iron ore are expected to strengthen in the near term, supported mainly by the further uptick in domestic hot metal production and replenishment demand among steelmakers, market sources suggest.
Mysteel's survey showed that during the country's Labour Day holiday over May 1-5 when mills were working normally, hot metal production at the sampled 247 blast furnace (BF) steelmakers nationwide ticked higher by 0.9% from the pre-holiday level to average 2.33 million tonnes/day.
WEEKLY: Quicker sales drag down thermal coal stocks at Chinese mines
Coal stocks at Chinese thermal coal mines continued to decline during April 26-May 2, thanks to the improved buying appetite from domestic end-users ahead of the country's Labour Day holiday over May 1-5, the results of Mysteel's latest weekly survey show.
For example, total coal inventories at the 462 thermal coal mines that Mysteel monitors nationwide dropped by a larger 6% on week to reach 1.32 million tonnes as of May 2, a five-month low since late November last year.
WEEKLY: Chinese coke plants' output jumps to 2-month high
The total production of metallurgical coke by the 230 Chinese independent coking plants sampled in Mysteel surveys jumped by another 15,500 tonnes/day on week during April 25-May 1 to 493,300 t/d on average, a two-month high, according to the latest survey's findings. The production spike aligned with the domestic coke makers finally shrugging off some of the losses they have been suffering on sales this year, according to survey respondents.
WEEKLY: China's steel scrap restocking demand tepid after holiday
Chinese steelmakers are in no hurry to replenish their steel scrap stocks after the national Labour Day holiday that ended on May 5, market sources observed. Domestic steel mills still have relatively sufficient inventories of the feedstock in plant to maintain their normal production, Mysteel's survey showed.
As of May 6, total steel scrap inventories held by the 300 blast furnace (BF) and electric-arc-furnace (EAF) steel mills under Mysteel's survey stood largely unchanged from the pre-holiday level at 5.18 million tonnes, or dipping 0.9% from April 30.
WEEKLY SUMMARY: China's major steel prices keep stable during holiday
领英推荐
China's prices of major steel products kept stable overall during the country's Labour Day holiday over May 1-5, as transactions in the physical market slowed down when many traders and end-users left the market for holiday during that period, Mysteel Global learned.
WEEKLY: China's rebar output rises faster to reach 3-month high
Rebar production among the 137 Chinese steelmakers surveyed by Mysteel nationwide increased for the third consecutive week over April 25-May 1, with the pace quickening to 4.4% or 97,400 tonnes on week to reach a more than three-month high of 2.32 million tonnes, new data show. During the previous week, output had risen by only 1.9%.
Survey respondents attributed the rise in rebar output to the fact that the Chinese steelmakers had brought more rolling mills back on stream ahead of China's five-day Labour Day holiday. Also, mills in all regions except Southwest China registered on-week gains in rebar output, particularly those located in East China.
WEEKLY: Holiday sees China's HRC output, stocks both mount
Production of hot-rolled coils (HRC) among the 37 Chinese flat steel producers Mysteel regularly monitors rose to 3.19 million tonnes during the country's Labour Day holiday over May 1-5, up by 34,000 tonnes or 1.08% on week, the latest weekly production survey shows. Most steelmakers continued to operate normally during the holiday period while much of the country enjoyed the break, Mysteel Global notes.
The hot-rolling capacity utilization rate among the 37 mills also?moved higher by 0.87?percentage point?on week to?average?81.5%?during the survey period, the results showed.
WEEKLY: Tangshan billet prices rise after holiday break
As of May 6, the first working day after China's Labour Day holiday over May 1-5, the Q235 150mm square billet price in Tangshan was assessed by Mysteel at Yuan 3,500/tonne ($485/t) EXW and including the 13% VAT, up Yuan 40/t from April 30 mainly driven by the rising rebar futures and improved mood in domestic market, the weekly survey showed.
On the demand side, the capacity utilization rate of steel re-rollers in Tangshan grew last week, lifting their appetite for the semis modestly. Over April 25-May 1, daily billet consumption among the 48 local re-rollers under Mysteel's tracking rebounded by 13,300 tonnes/day on week to average 57,500 t/d.
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]