Iron Ore Coal & Coke Billet Scrap Ferroalloy Freight Latest News Analysis Data MYSTEEL RAW MATERIAL DEPARTMENT Mysteel Raw Materials Daily Bringing you the latest updates on China raw materials markets www.mysteel.net Tuesday, August 2, 2016 Currency Exchange 1 USD = 6.6277 CNY 1 USD =1.3265AUD 1 USD=3.2648 BRL ISSUE 292 USD/DMT Mysteel IO Index (62% Fe Australia) Today's Highlight 80 70 Steel mills raise steel prices 60 50 Steel prices rose again. Shagang Group issued the early August’s adjustment 40 policy of steel prices on Aug 1th. Rebar price increased by 70 yuan/ton and 16- 30 25mm Spot rebar’s ex-factory price came to 2480 yuan/ton. Coiled rebar price 20 10 increased by 30/ton and 8-10mm spot coiled rebar’s strike price stood at 2530 0 yuan/ton. High speed wire price came to 2480 yuan/ton, up 30 yuan/ton. Hot- rolled coil products’ prices reached 2800-2830 yuan/ton, up 20 yuan/ton. Jul-15 Jul-16 Jan-16 Jun-15 Jun-16 Oct-15 Apr-15 Apr-16 Sep-15 Feb-16 Dec-15 Aug-15 Nov-15 Mar-15 Mar-16 May-15 May-16 USD/tonne Mysteel IO Index VS Mysteel Shanghai Rebar Index USD/dmt Iron ore price hits high 500 80 Iron ore future price 1609 hits three-month high of 486.5 yuan per tonne 450 70 400 60 in Dalian commodity exchange market, and is set to end July with a second 350 consecutive monthly gain, defying market expectations that iron ore would be 300 50 250 40 dragged down by increased supply in 2H16. Iron ore has advanced as higher steel 200 30 prices encouraged stronger steel output and iron ore consumption. 150 20 100 50 10 [Aug 2] Mysteel Market Price Summarization 0 0 Iron Ore Price Chg Mysteel Shanghai Rebar Index Mysteel IO Index (62% Fe Australia) Mysteel Australian fines 62% Fe Index, CFR, US$/dmt 61.5 +0.25 Mysteel Australian fines 62% Port Price Index Price, FOT, Yuan/wmt 462 +5 Yuan/ton Rebar Closing Price VS Rebar Index Yuan/ton Tangshan Domestic concentrates 66% Fe, Yuan/dmt, tax incl. 535-545 - 3500 500 DCE Iron Ore Futures Main Contract Closing Price, Yuan/mt 485.5 -0.21% 3000 400 Coal & Coke 2500 300 200 2000 Tangshan prime coking coal, Yuan/ton 760 - 100 1500 Shanxi PCI coal, Yuan/ton 430 - 0 Shanxi 1st grade Metallurgical Coke, Yuan/ton, ex-works 940 +60 1000 -100 500 -200 Billet 0 -300 Tangshan square billet, 150x150 mm Yuan/t, 150x150 mm, ex- works 2,110 +30 Scrap Price Spread Rebar Closing Price Rebar Index Jiangsu scrap price, 6-8mm, Yuan/ton 1,420 - Ferroalloy MYSTEEL RAW MATERIALS DAILY Ferrosilicon, 75-A, Northwest China, Yuan/ton 4,500 - Silicon Manganese, Mn65Si17, Yuan/ton 7,200 - Vice GM of Raw Materials Department: Zhang Yong (Evan) (+86-21-26093209) Rebar Mysteel Shanghai Rebar Price Index, HRB 400, Yuan/ton 2,439 +12 Mysteel Raw Materials Daily Editors: SHFE Rebar Futures Main Contract Closing price, Yuan/ton 2,514 +0.76% Valeria Cheng (+86-21-26095538 [email protected]) Mysteel Domestic Iron Ore Conference Site Visit + Workshop + Main Conference Cylin Cui (+86-21-66896547 [email protected]) Quinta Wang (+86 -21-26093621 [email protected]) Date: September 5-9 2016 Kimmy Hu(+86-21-66894661 [email protected]) Vicky Zou(+[email protected]) Service I Date: 5th-6th Sep, 2016 Mysteel Visit to Domestic Steel & Mining Enterprises based in Tangshan Province Service II Date: 7th Sep, 2016 Due Diligence Workshop Service III Date: 8th-9th Sep, 2016 2016 China Domestic Iron Ore Industry Chain Summit For more info, please contact [email protected] 01 Copyright © Mysteel.net, 2016. All Rights Reserved MYSTEEL RAW MATERIALS DAILY TUESDAY AUGUST 2, 2016 Iron Ore Market Report Mysteel Iron Ore Index [Aug 2]The seaborne iron ore market moved up on Tuesday. Currently, price index of 62% Australian fines Mysteel Iron Ore Index (USD/dmt) stood at CFR $61.50/dmt, up $0.25/dmt (MTD average at $61.38/dmt); index of 58% Australian fines reached Product Grade Index Change CFR $51.25/dmt, up $0.15/dmt; and index of 65% Brazilian fines index was at CFR $68/dmt, up $0.50/dmt. Australian fines 62% 61.5 0.25 Australian fines 58% 51.25 0.15 Australian iron ore miner Rio Tinto closed a tender of a cargo of 61% PB fines at $60.56/dmt, up from Brazilian fines 65% 68 0.5 last tender of $58.51/dmt, with laycan during August 24-September 2. Besides, BHP had a private bid negotiation that a cargo of 90,000 mt Newman fines was traded at $61.9/dmt on 62.7% Fe basis, with Mysteel Iron Ore Port Price Index (Yuan/wmt) laycan during August 16-25. There was one deal landing on the iron ore trading platform. A shipment of Product Grade Index Change 160,000mt 62.5% Vale fines was dealt at a premium of $1.2/dmt plus NOR average index based on +/- 5 ETA Australian fines 62% 462 5 days on Corex, with B/L on July 20. Australian fines 58% 387 - Offers on the seaborne iron ore market perked up on Tuesday with active traders’ offers, but most steel mills Brazilian fines 65% 523 - held a wait-and-see attitude, which led to less trading volume. Recently, the supply of high-grade MNP is Mysteel Lump & Pellet Premium (USD/dmtu) ample, and miners are still quoting for arrivals in late-August, buyers had more room to bargain. Grade Product Index Change 62.5% Lump 0.187 - As for the spot port iron ore market, dealers generally hiked offers affected by trending up iron ore futures 63% Pellet 14 - on the DCE, but the actual trading volumes are less due to steelmakers’ wait-and-see stand. At present, it 65% Pellet 22 - was heard that blended fines and Newman fines in the port of Caofeidian were traded at Yuan 395/wmt and Yuan 480/wmt, respectively; Indian fines in the port of Jingtang were dealt at Yuan 331/wmt; PB fines, [Jul 28]Mysteel Per 1% Differentials, Unit: US$/dmt Brazilian coarse fines, super special fines and PB lump in the port of Rizhao were settled at Yuan 460/wmt, With $/dmt change Yuan 470/wmt, Yuan 365/wmt and Yuan 560/wmt, respectively. Min-Max 60- 1.05 - Iron ore futures on the Dalian Commodity Exchange (DCE) dipped after an increase on Tuesday. The most Per 1% Fe 63.5%Fe liquid contract night market opened low at Yuan 485/dmt on the night market, with a slight decrease on Mysteel Iron Ore Survey the day market to Yuan 483.5/dmt, finally it was closed at Yuan 485.5/dmt, up 2.75% against settlement price last session, with open interest decreasing 41,000 lots. [Jul 29] Imported Iron Ore Port Stock, Mt 45 Sample Ports in China Elsewhere, spot prices of square billet in Tangshan stood at Yuan 2,110/mt ex-stock (in cash, incl. tax) after a Port Stock Jul 29 Jul 22 Change rise of Yuan 30/mt on Monday. Total 108.64 108.84 -0.20 Australian Ore 59.93 58.86 +1.07 According to Mysteel’s statistics, China’s iron ore inventory at 45 main ports stood at 109.37 millon tonnes, up 730,000 tonnes from last Friday, with daily offtake volume at 2.45 million tonnes, down from last Brazilian Ore 22.95 24.28 -1.33 Friday’s 2.546 million tonnes. Stocks had a great change in the port of Caofeidian port, Lanshan port and Ore for trading 34.51 32.84 +1.67 Majishan port, while overall inventories at other ports declined. Besides, offtake volume is at a low level as Pellet 3.18 3.65 -0.47 the opening of the conference of the 40th anniversary of the Tangshan earthquake had an obvious impact Concentrate 5.03 5.24 -0.21 on Jingtang and Caofeidian ports’ shipping, causing that the national offtake volume had a further drop. Lump 13.65 13.87 -0.22 In general, blast furnace operating rate is expected to reach above 8% as steel mills that cut production previously have successively resumed production recently, coupled with steelmakers’ rosy profitability, thus [July 28] Steel Mill Iron Ore Stock, Mt iron ore price is estimated to climb in the short term. 64 Sample China based steel mills -Written by Quinta Wang Imported Ore Day Change Imported sinter feed stock 22 -1 Industry Dynamics Domestic Ore Domestic pellet feed stock 6 -1 Steel mills raise steel prices Changzhi Company of Shougang Group also adjusted the products’ [Jul 28] Blast Furnace Feed Ingredients Share Steel prices rose again. Shagang prices on July 29th. The prices of 64 Sample China based steel mills Group issued the early August’s high speed wire and coiled rebar all adjustment policy of steel prices on increased by 30 yuan/ton and the Share Change Aug 1th. Rebar price increased by 70 price of rebar rose by 20 yuan/ton Pellet 11.36% -0.51% yuan/ton and 16-25mm Spot rebar’s compared with the previous day. Lump 12.37% +0.09% ex-factory price came to 2480 yuan/ Sintered Ore 76.27% +0.42% ton. Coiled rebar price increased Recently, the steel prices in the East, by 30/ton and 8-10mm spot coiled Central and Southwest regions have [Jul 22] Domestic Iron Mines Operation Rate rebar’s strike price stood at 2530 lifted obviously.