China’s imported iron ore prices for both port inventories and seaborne cargoes softened on June 15, with Mysteel’s PORTDEX 62% Fe Australian fines decreasing by Yuan 12/wmt ($1.7/t) from last Friday to Yuan 799/wmt FOT Qingdao and including the 13% VAT. Also on Monday, the SEADEX 62% Fe Australian Fines price edged down by $1.85/dmt from last Friday to $103/dmt CFR Qingdao.
价钱s of steelmaking raw materials including iron ore and coke in China performed rather strongly over June 8-12, mainly due to the remaining high blast furnace capacity utilization rate among China’s 247 steel mills, which rose to 92.35% as of June 11, up thirteen consecutive weeks and also 1.78 percentage points higher on year, according to Mysteel’s data.
Better than expected, China’s auto sales rose on year and on month for the second successive month in May after a 21-month continuing drop, up 14.5% on year or 5.9% on month to 2.2 million units, mainly due to the government’s preferential policies and robust demand for trucks for infrastructure construction, according to the release from the China Association of Automobile Manufacturers (CAAM) on June 11.
Imported iron ore inventories at China’s 45 major ports refreshed its new low since late October 2016, having eased for the eighth week over June 5-11 by another 56,000 tonnes or 0.5% on week to 106.9 million tonnes, and daily discharge rates at these ports reversed down, according to Mysteel’s latest weekly survey.
Blast furnace capacity utilization rate among China’s 247 steel mills rose to an alarmingly high of 92.35% by June 11 after have risen for thirteen consecutive weeks over June 5-11, as Chinese steel mills were still maximizing output on noting declines in finished steel stocks and positive steel margins, according to Mysteel’s survey.
The steady increase in steel scrap prices has undermined the profits of China’s electric-arc-furnace (EAF) steelmakers, with the mini-mills’ margins on rebar falling to around Yuan 50/tonne ($7.1/t) on average over the past week, market sources commented Thursday.
Mysteel’s PORTDEX 62% Fe Australian Fines dropped by a slight Yuan 8/wmt ($1.1/wmt) on day to Yuan 798/wmt FOT Qingdao and including the 13% VAT on June 10. The SEADEX 62% Fe Australian Fines index declined too, easing by $0.95/dmt on day to reach $103.4/dmt CFR Qingdao the same day.
Mysteel’s steel scrap price index, on a rise since the beginning of June, strengthened further to reach a three-month high of Yuan 2,492.6/tonne ($352.6/t) on delivery to mills and including the 13% VAT as of June 9, representing a rise of Yuan 51.1/t or 2.1% on week. Behind the price increase was the continuing tightness of scrap supplies from the seasonal decline in scrap availability, market insiders commented Wednesday.
Output of processed coking coal from the 110 affiliated and independent wash plants across China which Mysteel surveys weekly rose by 3.6% on week to an average of 708,400 t/d as of June 9, reflecting the stronger demand from end-users, according to Mysteel’s report on June 10. The latest output total also represented a new high since Mysteel began posting the data on its website last December.
China’s sales of excavators for both domestic and overseas customers for May had rose on year for the third successive month, up 68% on year, as end-users had been booking in anticipation of more construction projects in the coming months, according to the latest statistics from the China Construction Machinery Association (CCMA) on June 9.
Mysteel’s PORTDEX 62% Fe Australian Fines dropped by Yuan 7/wmt ($1/wmt) on day to Yuan 806/wmt FOT Qingdao and including the 13% VAT on June 9. The same day, the SEADEX 62% Fe Australian Fines index declined too, by $1.3/dmt on day, to $104.35/dmt CFR Qingdao.