Last week, the domestic raw material market experienced slight fluctuations. The price of imported iron ore remains stable with some fluctuations; The overall stability of the coke market; The price of coking coal has stopped falling and risen; The performance of various varieties of ferroalloys varies. During this period, the price changes of each major variety are as follows:
The price of imported iron ore remains stable with occasional drops
Last week, the price of imported iron ore remained stable with some decline. Due to the fact that domestic steel enterprises along the Yangtze River and coastal areas still have certain profits, the blast furnace operating rate of steel enterprises has slightly increased, and a few steel enterprises have made small purchases. The price of iron ore rose slightly in the first half of the week, but after the United States announced the imposition of so-called equivalent tariffs, the price of imported iron ore fell slightly. At the same time, the overall depreciation of the RMB exchange rate has weakened the willingness of traders to ship. The overall arrival and clearance of iron ore at major ports have decreased, and inventory has shifted from decreasing to increasing. Most steel companies have low expectations for the future and continue to operate with low inventory. Under the dual influence of demand support and increased supply, the price of iron ore is caught in a dilemma, and it is expected that the short-term iron ore market will continue to operate mainly with slight fluctuations.
Domestic metallurgical coke prices remain stable
Last week, the overall price of metallurgical coke in China remained stable, with slight fluctuations in certain regions. The metallurgical coke prices of coke enterprises in East China, North China, Northeast China and other regions are stable, and some coke enterprises have increased their metallurgical coke quotations by 20 yuan/ton to 30 yuan/ton; The monthly pricing of metallurgical coke by coke enterprises in the central and southern regions has dropped by 50 yuan/ton; The purchase price of metallurgical coke by steel enterprises in the southwest region is stable at ten day pricing. A large steel enterprise in Shandong has reduced its daily consumption of metallurgical coke by 2000 tons due to the shutdown of two blast furnaces. The capacity utilization rate of coke enterprises and the operating rate of blast furnaces have both rebounded, and the supply and demand of metallurgical coke have increased. With the improvement of demand, the inventory of coke enterprises continues to decline, and coupled with the rebound of coking coal prices, coke enterprises plan to propose the first round of metallurgical coke price increases in the near future. It is expected that the price of metallurgical coke will rise in the near future.
The domestic coking coal market is operating steadily, with a moderate to strong trend
Last week, the domestic coking coal market remained stable but slightly strong, with online auction prices mainly rising. The price of low sulfur coking coal in Linfen, Shanxi has increased by 10 yuan/ton to 1290 yuan/ton; The price of Lvliang coking coal has increased by 50 yuan/ton to 1200 yuan/ton. The price of gas and coal in Zichang, Shaanxi ranges from 860 yuan/ton to 900 yuan/ton, while the price of gas and coal in some parts of Shandong remains stable. The price of lean coal in Changzhi, Shanxi is stable with some increase. The long-term agreement price for coking coal in the second quarter has been finalized, with a supplementary decrease of 30 yuan/ton to 80 yuan/ton. The online auction transaction situation is good, with a comprehensive transaction rate rising to 87.5%. Jiaoda and traders have increased their purchasing enthusiasm, and some coal mines are reluctant to sell and waiting for an increase. It is expected that the domestic coking coal prices will remain stable with some increase in the near future.
The performance of various varieties in the ferroalloy market varies
Last week, the performance of various varieties in the ferroalloy market varied. The ferrosilicon market is mainly stable, with the transaction price of the No. 72 ferrosilicon processing block ranging from 5720 yuan/ton to 5800 yuan/ton. According to data, the weekly output of sample ferrosilicon production enterprises in the five major production areas in the first week of April was 84100 tons, an increase of 400 tons from the previous week, with a weekly capacity utilization rate of 53.78%. The inventory of silicon iron futures delivery warehouse is 61000 tons, and the overall market sentiment is pessimistic. Silicon iron production enterprises have increased production cuts, and currently, transactions are mainly based on a small amount of low-priced resources. It is expected that the ferrosilicon market will remain stable with slight fluctuations in the near future. The price of silicon manganese has slightly decreased by 50 yuan/ton. The new round of silicon manganese procurement prices for Fujian Sangang, Yonggang, and Zhongtian ranges from 6039 yuan/ton to 6150 yuan/ton, with a slight shift in pricing focus from the previous week. The spot price of manganese ore at the port has dropped by 0.3 yuan/ton to 2 yuan/ton, and the price of oxidized ore has dropped significantly. At present, the price of silicon manganese futures has rebounded slightly, and the basis point price resources are basically no advantage, waiting for a new round of steel enterprise demand release. It is expected that the silicon manganese market will operate steadily in the near future.
The retail price of high carbon ferrochrome is accelerating its rise. The purchase price of high carbon ferrochrome by Qingshan Group in April was 7595 yuan/50 basis tons, an increase of 600 yuan/50 basis tons compared to March. The bidding price increase of the iconic steel enterprise is in line with expectations. The spot price of chrome ore at the port has increased by 2 yuan/ton to 4.5 yuan/ton; The depreciation of the Chinese yuan has led to an increase in the cost of purchasing chrome ore futures, and the market is observing the release of a new round of futures quotes. At present, the production cost of high carbon ferrochrome continues to rise, but enterprises still have no profits, and the market’s circulating resources are still limited. It is expected that the high carbon ferrochrome market will continue to operate strongly in the short term.
In terms of vanadium based alloys, the price of vanadium nitrogen alloys has increased by 1000 yuan/ton, and the price of vanadium iron has increased by 2000 yuan/ton. The price of 98 pieces of vanadium has increased by 500 yuan/ton, and due to the maintenance of the Jianlong blast furnace in Heilongjiang, the production of vanadium flakes has decreased. It is expected that the price of vanadium based alloys will remain stable with slight fluctuations in the near future. In terms of molybdenum based alloys, the price of 60 molybdenum iron is stable, and steel companies such as CITIC have bid prices ranging from 216000 yuan/ton to 221500 yuan/ton. The price of 45%~47% grade molybdenum concentrate is stable. At the beginning of the week, the mine bid was strong on the raw material side, and the low-priced resources of molybdenum and iron decreased. After a large steel enterprise set the purchase price of molybdenum iron at 216000 yuan/ton in the middle of the week, the bidding price of the steel enterprise remained stable with a slight decline, and the opening price was concentrated around 220000 yuan/ton, resulting in a game between supply and demand. It is expected that the molybdenum alloy market will remain stable with slight fluctuations in the near future.