International Steel Prices

Update from China: Iron Ore, Futures, Export Price Offers

Written by John Packard

On Monday, the futures markets surged 7 percent in China. We reached out to one of our trading contacts in China to see what we could learn about physical steel trading prices into the export markets out of China:

Future’s market jumped 7% yesterday but only on Hot Money influx. Spot market was up RMB15 per metric ton on Debars [rebar] and Ore respectively, a mere USD2.15 per metric ton (MT).

China government has implemented a 50% cutback in Steel production till Mid Oct for those mills in Northern China due to political reasons, International conferences etc.., typical this time of the year.

If you recall, I advise you of the high port stocks on iron ore, 130 million MTS +++. 

Current prices for End September delivery:

HRC: USD500-505/metric ton (MT) fob Stowed [$551.15 to $556.67 per net ton]

HRP&O: USD510-515/MT fob st [$562.18 to $567.69 per net ton]

CRC: USD600-605/mt fob st [$661.39 to $666.90 per net ton]

GI: USD655-660/mt fob st [$722.01 to $727.52 per net ton]

EG: USD670/mt fob st [EG = Electro Galvanized $738.55 per metric ton]

CRGO: USD775/mt fob st [Grain Oriented $854.29 per net ton]

John, above price on HR side is Base 2.3mm [.905”] thickness and CRC and Coated on 0.9mm [.0354”] Base. 

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