How did China back to the markets after the Lunar New Year holiday?

After the Lunar New Year holiday in China, the expected return to the market did not materialize. Demand was also weaker than expected as buyers were more cautious after the holiday. Market participants expect the market situation to become clearer in the coming weeks.

Looking at Chinese iron ore futures, the US dollar depreciated, resulting in a slight increase. In addition, slow shipments due to the hurricane season in Australia also pushed Chinese iron ore prices higher. On the Dalian Commodity Exchange, iron ore DCIOcv1 increased by 1.43% to reach USD 112.22/t

Offers are mixed in the Far East billet market. Average billet offers from Indonesia are at USD 445/mt FOB but buyers are cautious as they expect lower offers.

In China, official offers are not yet available after the Lunar New Year holiday, but probable offers from traders are in the range of USD 435/mt FOB.

In China's HRC market, prices started to decrease after the Lunar New Year holiday. Demand is also weak after the holiday. However, market participants expect prices to improve after the Lantern Festival on February 12.

Shanghai spot HRC USD 467/t 

China HRC index USD 464/mt FOB 

Current price HRC SS400 USD 460/mt FOB China offered by traders

China HRC Q235 USD 475/mt CFR Vietnam

The Chinese rebar market also faced insufficient demand after the holidays. Currently, prices have been reduced by USD 5 on average to stimulate demand. As is the case every year, rebar demand is expected to pick up with the arrival of spring (early March).

Average offer prices:

B500B rebar 477 USD/mt FOB

SD400 rebar 470 USD/mt FOB

The coking coal market in China was affected by the 15% tariff imposed by the US after the Lunar New Year holiday. Buyers started to prefer the local market due to the additional tariff. Market participants expect import costs to increase by USD 15-20 per ton.

Current offers for coking coal are quoted at USD 178/mt CFR North China

Demand in the Indian coke market is recovering. However, according to market participants, the impact of the improved demand has not yet been reflected on prices.

Current coking coal prices are offered at USD 198.20/mt CFR India