Chinese domestic plate prices rise on higher HRC prices
Given the good expectations for China's domestic plate market after the New Year holiday, Chinese plate prices have been rising this week, Steel Business Briefing learns from the market. In Guangzhou, Q235 14-20mm plate from Liuzhou Iron & Steel is being offered at RMB 4,000-4,050/t ($588-596/t), up RMB 250/t ($37/t) from the middle of this month. In Shanghai, traders are offering similar grade materials at around RMB 3,900/t, up by RMB 200/t ($29/t) from mid-December. Recently, hot rolled coil spot prices have kept rising due to mills' higher January ex-works prices. The rising HRC spot prices have also helped to improve plate prices, despite low transaction levels in the plate market. Meanwhile, most traders believe plate market prices will continue to rise in January to catch up with mills' ex-works prices. SBB notes that northern mill, Hebei Iron & Steel, recently raised its January plate ex-works prices by RMB 200/t, while the southern mill, Shaoguan Iron & Steel, increased its plate ex-works prices by RMB 60/t ($9/t) from 20 December.
Korean domestic scrap prices rise slightly
Korean domestic scrap prices being quoted by local mini mills have strengthened slightly by KRW 10-20,000/tone ($8.5-17/t) during the week of 21~25 December compared with the previous week. The uptrend is because of special incentives being paid to encourage domestic scrap suppliers to step up deliveries. Local mini mills are currently quoting around KRW 380,000/t ($324/t) for Shindachi grade, Steel Business Briefing learns. Rising product stock levels at their yards from late last month have led mini mills to trim steel output, especially the rebar producers. This has lowered demand for scrap and consequently led the mini mills to reduce scrap buying prices. In response however, local scrap dealers have slowed deliveries to mill yards and this is forcing some mini mills to begin paying incentives to maintain their scrap inventory levels. The size of the incentives differs according to quantity and grades of scrap. Meanwhile, the Korean government's public procurement service (PPS) has secured 16,000 tonnes of Japanese scrap through the auction it held on 15 December. The service secured a combined 8,000 t from Toyota Tsusho Corp at KRW 390,993/t ($335/t) for H1 grade and KRW 387,048/t ($330/t) for H2. Other Japanese bidders Mitsui Bussan Raw Materials and Shizuoka-based Econecol Inc won 5,000 t of H2 grade at KRW 384,430/t ($328/t), and 3,000 t of H2 grade at KRW 383,115/t ($327/t) respectively. The PPS had sought 40,000 t of the US scrap and 20,000 of Japanese material at the auction the same day, as SBB reported. But it was unsuccessful again to buy US scrap and only partially for Japanese. So far, the PPS has booked 60,000 t of scrap in total.
Indian iron ore export prices increase again
The surge in Indian iron ore export prices from earlier this month has continued this week, with prices of Fe 63.5% fines touching levels of $118/tonne cfr. Though few transactions are currently taking place, prices are expected to continue to rise in January. This is due to the shortage of available Indian ore, India's recent imposition of a 5% export duty on iron ore fines and lumps [see other article], and increased buying by Chinese mills before the Lunar New Year holidays. Fe 63.5%/63% ore was being offered at levels of $120/t late last week and Steel Business Briefing hears of one parcel of 50,000 t of these fines, booked at $118/t cfr to be shipped from the west coast. "With the imposition of the 5% export tax, offer prices of Fe 63.5%/63% ore are bound to increase to around $125/t cfr while transactions will definitely happen at around $120-121/t cfr by the beginning of next week," a Delhi-based trader tells as SBB. "There is still a shortage of iron ore from Orissa and Karnataka that will keep prices hovering at higher levels in January." SBB hears of one cargo of 50,000 t of Fe 61%/60% material booked late last week at Belekeri port in Karnataka in a Panamax vessel, with a freight of $25/t cfr, to main ports China. Goanese ore has also seen a similarincrease in price. On 24 December India's largest private miner, Sesa Goa, closed a bid for 50,000 t of Fe 58% iron ore at $102/t cfr, local traders say. SBB hears of one parcel of Fe 59%/58% ore booked in a Panamax vessel at $104/t cfr on 29 December. The miner is not known to SBB.
Given the good expectations for China's domestic plate market after the New Year holiday, Chinese plate prices have been rising this week, Steel Business Briefing learns from the market. In Guangzhou, Q235 14-20mm plate from Liuzhou Iron & Steel is being offered at RMB 4,000-4,050/t ($588-596/t), up RMB 250/t ($37/t) from the middle of this month. In Shanghai, traders are offering similar grade materials at around RMB 3,900/t, up by RMB 200/t ($29/t) from mid-December. Recently, hot rolled coil spot prices have kept rising due to mills' higher January ex-works prices. The rising HRC spot prices have also helped to improve plate prices, despite low transaction levels in the plate market. Meanwhile, most traders believe plate market prices will continue to rise in January to catch up with mills' ex-works prices. SBB notes that northern mill, Hebei Iron & Steel, recently raised its January plate ex-works prices by RMB 200/t, while the southern mill, Shaoguan Iron & Steel, increased its plate ex-works prices by RMB 60/t ($9/t) from 20 December.
Korean domestic scrap prices rise slightly
Korean domestic scrap prices being quoted by local mini mills have strengthened slightly by KRW 10-20,000/tone ($8.5-17/t) during the week of 21~25 December compared with the previous week. The uptrend is because of special incentives being paid to encourage domestic scrap suppliers to step up deliveries. Local mini mills are currently quoting around KRW 380,000/t ($324/t) for Shindachi grade, Steel Business Briefing learns. Rising product stock levels at their yards from late last month have led mini mills to trim steel output, especially the rebar producers. This has lowered demand for scrap and consequently led the mini mills to reduce scrap buying prices. In response however, local scrap dealers have slowed deliveries to mill yards and this is forcing some mini mills to begin paying incentives to maintain their scrap inventory levels. The size of the incentives differs according to quantity and grades of scrap. Meanwhile, the Korean government's public procurement service (PPS) has secured 16,000 tonnes of Japanese scrap through the auction it held on 15 December. The service secured a combined 8,000 t from Toyota Tsusho Corp at KRW 390,993/t ($335/t) for H1 grade and KRW 387,048/t ($330/t) for H2. Other Japanese bidders Mitsui Bussan Raw Materials and Shizuoka-based Econecol Inc won 5,000 t of H2 grade at KRW 384,430/t ($328/t), and 3,000 t of H2 grade at KRW 383,115/t ($327/t) respectively. The PPS had sought 40,000 t of the US scrap and 20,000 of Japanese material at the auction the same day, as SBB reported. But it was unsuccessful again to buy US scrap and only partially for Japanese. So far, the PPS has booked 60,000 t of scrap in total.
Indian iron ore export prices increase again
The surge in Indian iron ore export prices from earlier this month has continued this week, with prices of Fe 63.5% fines touching levels of $118/tonne cfr. Though few transactions are currently taking place, prices are expected to continue to rise in January. This is due to the shortage of available Indian ore, India's recent imposition of a 5% export duty on iron ore fines and lumps [see other article], and increased buying by Chinese mills before the Lunar New Year holidays. Fe 63.5%/63% ore was being offered at levels of $120/t late last week and Steel Business Briefing hears of one parcel of 50,000 t of these fines, booked at $118/t cfr to be shipped from the west coast. "With the imposition of the 5% export tax, offer prices of Fe 63.5%/63% ore are bound to increase to around $125/t cfr while transactions will definitely happen at around $120-121/t cfr by the beginning of next week," a Delhi-based trader tells as SBB. "There is still a shortage of iron ore from Orissa and Karnataka that will keep prices hovering at higher levels in January." SBB hears of one cargo of 50,000 t of Fe 61%/60% material booked late last week at Belekeri port in Karnataka in a Panamax vessel, with a freight of $25/t cfr, to main ports China. Goanese ore has also seen a similarincrease in price. On 24 December India's largest private miner, Sesa Goa, closed a bid for 50,000 t of Fe 58% iron ore at $102/t cfr, local traders say. SBB hears of one parcel of Fe 59%/58% ore booked in a Panamax vessel at $104/t cfr on 29 December. The miner is not known to SBB.
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