International Steel Prices

Chinese Steel Offers to Europe & Iron Ore Pricing

Written by John Packard

We communicated with one of our main Asian contacts over the past few days. We wanted to know what they have been seeing regarding new carbon sheet price offers out of China for their European customers (this source does not ship steel to the USA). We also wanted to learn more about iron ore prices as this source is a supplier of iron ore into the Chinese markets. We received the following earlier this week:

I can give you some information as below on what we have been working on, but nothing being fixed on orders yet.

HRC: 1.80mm up to 12.0mm x 1500/2000mm widths in S235JR/S275JR and S355J2+N (Normalized Rolled – Temp Controlled)  and Silicon Controlled to 0.03% Max. Effective price USD540-545/MT FOB ST. LSD or +USD45/MT freight to EU on 5-8000mts lots. The 235/275/355 is Min. Yield Qualities. (SMU Note: $545 + $45 freight = $590 per metric ton European port = $535 per net ton European Port. Material is .071” to .472” in standard Chinese widths). Chinese hot rolled is not allowed to be shipped to the USA).

CRC: 0.60mm up to 2.3mm x 1000/1250/1500mm widths in DC01 (SAE1006 Al-Ki) Effective Price USD620/MT FOB ST. LSD or +USD45/MT freight to EU on 5-8000mts lots.  (SMU Note: $620 + $45 freight = $665 per metric ton = $603 per net ton European port.  Cold rolled .0236” to .090” in standard European widths.)

GI: 0.50mm up to 1.20mm x 1000/1250/1500mm widths in DX51D (ASTM A653 CS type B) and Zinc Coating 200-275gr/m2 and Effective Price USD740/MT FOB ST. LSD or + USD45/MT freight to EU on 5-8000mts lots. (SMU Note: galvanized .0197” to .0473” in European standard widths at $740 + $45 freight = $785 per metric ton = $712 per net ton European port).


As for Ore, Indices can print/say what they wish John, but if the Ore is not sold at the Index Levels with a 8-10% discount, unless it is 65% Fe, then no one will buy it. Also, we are at the end of the year again where Banks are renewing Credit Lines which will carry into the New Year of 2014, and a lot of Buyers are in a Holding Pattern as to new purchases.

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