China steel market prices increased amid fluctuation, 2020. Operating
rate of electric furnaces edged up while blast furnace remained at a
high level. Market inventory kept dropping
SteelHome China Steel Price Index (SHCNSI)
closed at 96.91 points (4,192 yuan) on October 23, up 0.06 points from
the previous week.
Overview
At present, China's economy continues to recover steadily, with major
economic indicators continuing to improve.
According to the National Bureau of Statistics, GDP in the first three
quarters was 7227.86 billion yuan, up 0.7% year-on-year at comparable
prices.
National fixed asset investment over January-September reached 43,653
billion yuan, up 0.8% year-on-year, of which infrastructure investment
rose by 0.2% year-on-year, January-August for the decline of 0.3%,
manufacturing investment fell 6.5%.
Industrial production continued to accelerate. In September, industrial
value added above designated size actually increased by 6.9%
year-on-year, the growth rate accelerated by 1.3 percentage points
compared with August.
Crude steel and steel output in September hit the record high. In
October 1-11, daily average output of crude steel in key steelmakers
kept around 2.17 million tons, while domestic steel market inventory
kept declining, reflecting the boom supply and demand in domestic
market. Meanwhile, the production restriction in Beijing, Tianjin, Hebei
Province and surrounding areas is not intensified yet.
SteelHome predicts that steel market prices will continue to rise amid
fluctuation next week.
HR/CR Plate/Coil
HRC
China’s HRC market price generally went up during the week ended October
23, 2020.
By October 23 (Friday), the average price of 2.75mm Q235 HRC in 28
Chinese markets came to 4,038 yuan/t, up 14 yuan/t from the previous
week; 5.75mm Q235 HRC was 3,932 yuan/t, up 13 yuan/t respectively from
the previous week.
It was learned that the market transactions were improved and HRC
inventory kept dropping. Traders are prudent and optimistic about the
further market development. The downstream demand was strong as
automobile and excavator output soared.
SteelHome predicts that HRC market price will edge up next week.
CRC
China’s CRC market price generally rise amid fluctuation during the week
ended October 23, 2020.
By October 23 (Friday), the average price of 0.5mm CRC and 1.0mm SPCC
CRC in 28 major Chinese steel markets in the week were 5,038 yuan/t and
4,797 yuan/t, up 17 yuan/t and 14 yuan/t respectively from the previous
week.
SteelHome learned that CRC market were supported by the boosted
downstream automobile and home appliance industries. Traders maintained
the market inventory at a low level. However, as the price difference
between CRC and HRC is huge, traders were prudent about the market
development.
SteelHome predicts that CRC market price will go up next week.
Construction Steel
Construction steel market prices slightly increased in most marekts
during the week ended October 23, 2020.
By October 23 (Friday), the average price of 8mm HPB300 high speed wire
rod and 18-25mm HRB400 were 3,990 yuan/t and 3,763 yuan/t from last
week, up 21 yuan/t and 16 yuan/t.
According to SteelHome survey, construction steel market inventory kept
reducing while the trading volume increased from last week, indicating
the strong demand in construction sites.
SteelHome predicts that construction steel market price will rise amid
fluctuation next week.
Medium Plate
China’s medium plate market price fluctuated in domestic market during
the week ended October 23, 2020.
By October 23 (Friday), the 8mm Q235 medium plate prices averaged 4,281
yuan/t and 20mm Q235 medium plate was 3,986 yuan/t, roughly flat from
last week.
SteelHome was told that the market transactions were tepid and
downstream users mainly procured in accordance with the demand. The
settlement price of steel mills was firm. And traders were prudent yet
optimistic about the market development.
SteelHome predicts that China’s medium plate market price will rise amid
fluctuation next week.
Plated/ Color Coated Steel
China’s plated/color coated steel prices basically flat in some markets
during the week ended October 23, 2020.
By October 23 (Friday), average price of 0.5mm and 1.0mm plating steel
of 18 markets was 5,106 yuan/t and 4,810 yuan/t, up 2 yuan/t and 2
yuan/t respectively from last week.
The price of 0.326mm color coating steel and 0.476mm color coating steel
was 6,222 yuan/t and 6,047 yuan/t, down 1 yuan/t and 2 yuan/t
respectively from previous week.
The market prices were supported by the high CRC price.
SteelHome predicts that China’s plated and color coated steel price will
slightly increase next week.
Strip
China’s hot-rolled strip market prices rose amid fluctuation during the
week ended October 23, 2020.
By October 23 (Friday), the average price of 2.75mm * 235mm was 4,008
yuan/t, up 11 yuan/t from last week and 5.5mm * 685mm strip of 28
Chinese markets were 3,989 yuan/t, up 10 yuan/t from last week.
The transactions were roughly plain. Tangshan city, the hub of strip
started level II response to the heavy pollution weather, thus rolling
enterprises restricted the production. Downstream pipe mills chiefly
consumed the inventory.
Traders mainly focus in selling and remained prudent about the market
development.
SteelHome predicts that HR strip price will rise amid fluctuation next
week.
Sections
China’s section steel price fluctuated during the week ended October 23,
2020.
By October 23 (Friday), the average price of 5# Q235 angle, 16# Q235
channel and 25# Q235 I beam in 28 Chinese marketplaces was 3,983 yuan/t,
3,919 yuan/t and 3,966 yuan/t, up 11 yuan/t, 10 yuan/t and 8 yuan/t
compared to the previous week.
The average price of Q235 200* 200mm, 400* 200mm and 400* 400mm H beam
was 3,764 yuan/t, 3,840 yuan/t and 3,988 yuan/t, down 1 yuan/t, 4 yuan/t
and 4 yuan/t from the previous week.
Tangshan City, the main hub of section steel started the level II
response to heavy pollution on October 23, restricting the section steel
production of some steelmakers.
SteelHome predicts that China’s section steel market price will
fluctuate next week.
Structural Steel
China’s structural steel price saw ups and downs during the week ended
October 23 2020.
By October 23 (Friday), the average price of 50mm 45# carbon structural
steel and 40Cr alloy structural steel of 22 Chinese markets was 4,101
yuan/t and 4,333 yuan/t, up 1 yuan/t and 1 yuan/t from the last survey.
According to SteelHome preliminary survey, round steel inventory of
seven special steel enterprises in Jiangsu Province amounted to 353,000
tons by October 22, 2020, up 34,300 tons or 10.76% from October 15.
Round steel inventory of eight special steel enterprises in Shandong
Province amounted to 204,500 tons by October 22, 2020, down 16,000 tons
or 7.26% from October 15.
At present, the structural steel prices were comparatively high and
traders are bearish about the market development. The market price is
supported by the structural steel ex-work price.
SteelHome predicts that domestic structural steel price will fluctuate
next week.
Table 1: Chinese Steel Price during October 16-23, 2020 (price in yuan/t)
Product |
Spec. |
Size |
Average price (yuan/t) |
Average price (dollars per tonne) |
Weekly change (yuan/t) |
Weekly change (dollars per tonne) |
HRC |
Q235 |
2.75mm |
4038 |
605.4 |
+14 |
2.1 |
Q235 |
5.75mm |
3932 |
589.5 |
+13 |
1.9 |
CRC |
SPCC |
0.5mm |
5038 |
755.3 |
+17 |
2.5 |
SPCC |
1.0mm |
4797 |
719.2 |
+14 |
2.1 |
Wire Rod |
HPB300 |
8mm |
3990 |
598.2 |
+21 |
3.1 |
Rebar |
HRB400 |
18-25mm |
3763 |
564.1 |
+16 |
2.4 |
Medium plate |
Q235 |
8mm |
4281 |
641.8 |
- |
- |
Q235 |
20mm |
3986 |
597.6 |
- |
- |
Galvanized sheet |
DX51D+Z |
0.5mm |
5106 |
765.5 |
+2 |
0.3 |
DX51D+Z |
1.0mm |
4810 |
721.1 |
+2 |
0.3 |
Coated sheet |
CGCC |
0.326mm |
6222 |
932.8 |
-1 |
-0.1 |
CGCC |
0.476mm |
6047 |
906.6 |
-2 |
-0.3 |
Strip |
Q235 |
2.75mm * 235mm |
4008 |
600.9 |
+11 |
1.6 |
Q235 |
5.5mm * 685mm |
3989 |
598 |
+10 |
1.5 |
Angle Steel |
Q235 |
5# |
3983 |
597.1 |
+11 |
1.6 |
Channel Steel |
Q235 |
16# |
3919 |
587.5 |
+10 |
1.5 |
Q235 |
25# |
3966 |
594.6 |
+8 |
1.2 |
H beam |
Q235 |
200* 200mm |
3764 |
564.3 |
-1 |
-0.1 |
Q235 |
400* 200mm |
3840 |
575.7 |
-4 |
-0.6 |
Q235 |
400* 400mm |
3988 |
597.9 |
-4 |
-0.6 |
Structural Steel |
45# |
50mm |
4101 |
614.8 |
+1 |
0.1 |
40Cr |
50mm |
4333 |
649.6 |
+1 |
0.1 |
Source: SteelHome
Table 2: China Steel Export Price on October 21, 20204
Price in US dollars per ton, FOB, China ports
Product |
Spec & Size |
Export Price |
Weekly up/down |
Note |
Square steel |
Q235 120mm |
445 |
- |
- |
Rebar |
B500 12-25mm |
515 |
- |
Theoretical weight, small tolerance |
Wire rod |
SAE1008 6.5mm |
520 |
- |
Actual weight |
Medium plate |
SS400 12-40mm |
520 |
- |
- |
HR coil |
SS400B 3-12mm |
515 |
- |
- |
CR coil |
SPCC 1.0mm |
580 |
15 |
- |
H beam |
Q235 200*100m |
540 |
- |
Theoretical weight, small tolerance |
Galvanized sheet |
SGCC 1.0*1250mm |
625 |
- |
Zn: 120g, regular zinc spangle |
Hot dipped galvanized sheet |
DX51D+Z 1.0mm |
625 |
- |
Zn: 120g, no zinc spangle |
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