Mainstream ex-China steel plate offer prices from mills have been heard at $525-530/mt FOB for December shipment as of today, Monday, October 21, decreasing by $20/mt on average as compared to October 14. The reference deal prices have been heard at $525/mt FOB to South America, Africa and the Middle East, down $15/mt on average compared to October 14.
During the given week, steel plate prices in the Chinese domestic market have moved down amid weakening market sentiments and slackening demand from downstream users. The downtrend of HRC futures prices has exerted a negative impact on the steel plate market, reducing speculative demand. There have been fewer arrivals of steel plate supplies in the spot market, bolstered prices to a certain degree. Meanwhile, the People’s Bank of China (PBoC) has announced a cut of 25 basis points in the five-year loan prime rate (LPR) to 3.6 percent, supporting market sentiments as it will alleviate the pressure on mortgage borrowers and will likely stimulate more purchases and positively affect the steel market. It is thought that steel plate prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average Q235 20 mm steel plate spot prices in China have lost RMB 140/mt ($19.7/mt) compared to October 14, standing at RMB 3,633/mt ($512/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,518/mt ($495.5/mt), decreasing by RMB 116/mt ($16/mt) or 2.74 percent since October 14, while up 0.95 percent compared to the previous trading day, October 18.
$1 = RMB 7.0982