Weekly Performance in the Domestic Raw Material Market

Descripción general

La semana pasada, the performance of various raw materials in the domestic market varied. Prices for iron ore fell initially before rising, while coke prices increased, and the coking coal market remained stable and strong. Most ferroalloy prices continued to decline.

Iron Ore

Iron ore prices experienced fluctuations, falling initially before rising again. The trading volume in the foreign market significantly decreased due to increased losses for some steel companies and a cautious approach from buyers. Inventories at major ports continued to rise, with some ports experiencing concentrated arrivals. Steel companies were cautious with purchases, leading to active shipping by spot traders. By the end of the week, foreign market prices rose, resulting in higher RMB-converted prices than port spot prices. Steel companies with urgent needs purchased small amounts of spot resources. The overall demand for iron ore increased with some large steel companies in East China resuming large blast furnace operations. The iron ore market is expected to fluctuate slightly in the short term.

Metallurgical Coke

The first round of domestic metallurgical coke price increases was implemented last week. Prices for coke enterprises in East China, Norte de China, Northeast China, and Northwest China rose by 50-55 yuanes/tonelada. Prices remained stable for coke enterprises with monthly pricing in Central and South China, as well as for steel enterprises with ten-day pricing in Southwest China. Supply and demand for metallurgical coke increased, with a 1.42 percentage point rise in the blast furnace operating rate for 220 steel enterprises and a 0.13 percentage point rise in the capacity utilization rate for 200 independent coke enterprises. The total inventory of metallurgical coke decreased by 42,000 montones, con 100 coke enterprises seeing an increase of 40,000 montones. The tight balance in supply and demand is expected to keep prices stable in the near term.

Coking Coal

The domestic coking coal market remained stable and strong last week, with online auction prices fluctuating. Low-sulfur coking coal prices in Shanxi initially fell before rising to 1,900-1,950 yuanes/tonelada. Gas coal prices in Shaanxi were stable at 1,120-1,170 yuan/ton with normal shipments and no inventory pressure. Gas coal prices in Huangling rose by 20 yuan/tonelada a 1,230 yuanes/tonelada. In Inner Mongolia, fat coal prices increased by 20-50 yuan/ton in online auctions. Coking coal prices in Shandong and Jiangsu remained stable, while prices in Guizhou fell by 50-100 yuanes/tonelada. The price increase for metallurgical coke boosted the coking coal market, leading to improved shipments from coal mines. Prices for coking coal are expected to remain stable in the near term.

Ferroalloys

Ferrosilicon

Ferrosilicon prices fell initially before stabilizing, with an overall decline of 130-200 yuanes/tonelada. Shagang’s July purchase price decreased by 374 yuan/tonelada a 7,155 yuanes/tonelada. Weekly output for ferrosilicon production enterprises fell by 1,600 tons to 104,100 montones. Gansu Dachang plans to resume production of two large submerged arc furnaces in mid-July. The futures market price declined, and inventory in delivery warehouses decreased by 11,500 montones. The domestic ferrosilicon market is expected to remain weak in the near future.

Silicon Manganese

Silicon manganese prices continued to fall, with ex-factory prices in major production areas dropping by 200-250 yuanes/tonelada. New round of silicon manganese purchase prices for steel companies are 7,470-7,800 yuanes/tonelada. Manganese ore prices at ports fell by 0.5-2 yuanes/tonelada, leading to cautious purchasing by alloy manufacturers. Jianchang County in Liaoning Province plans to resume production of a 45-cubic-meter blast furnace, increasing monthly output of manganese-rich slag to 4,000 montones. The silicon manganese market is expected to remain weak in the near future.

High-Carbon Ferrochrome

High-carbon ferrochrome prices rose initially before falling, with an overall retail market increase of 50 yuan/50 base tons. July purchase prices for Taigang and Tsingshan Group remained unchanged from June, falling below market expectations. Chromium ore prices at ports remained stable. A high-carbon ferrochrome production enterprise in Guangxi stopped production of a submerged arc furnace, reducing monthly output by 2,000 montones. Limited profit margins for production enterprises have led to increased retail shipments and limited willingness to ship at low prices. The high-carbon ferrochrome market is expected to remain steady in the short term.

Vanadium Alloys

Vanadium alloy prices fell by 2,000-5,000 yuanes/tonelada. Bidding prices for vanadium-nitrogen alloys from Laigang and Kunming Steel were 119,500-126,800 yuanes/tonelada, while ferrovanadium bidding prices were 87,800 yuanes/tonelada. The price of 98 vanadium pieces fell by 2,000 yuanes/tonelada. Increased bidding activity from steel companies and downward pressure on raw materials have led to a cautious market. The recent revision of the mandatory national standard for rebar in 2024 may increase demand for vanadium alloys, potentially stabilizing prices in the near future.

Molybdenum Alloys

The price of 60 ferromolybdenum fell by 14,000 yuanes/tonelada, mientras que el precio de 45%-47% grade molybdenum concentrate fell by 200 yuanes/tonelada. Taigang’s ferromolybdenum purchase price is 235,000 yuanes/tonelada, con mayor actividad de licitación y volumen de empresas siderúrgicas, lo que resulta en una caída de los precios. Se espera que el mercado de aleaciones de molibdeno siga débil en el futuro próximo..