As part of our ongoing effort to keep you informed and supported, here is your monthly Steel Abrasives Market Report — focused on key cost drivers that impact product pricing and lead times.

📌 Executive Summary – September Highlights

• Steel scrap softened 2.1% M/M, averaging $338.5/ton, helping stabilize shot/grit costs.
• Industrial electricity prices in Shandong remained stable and below 2024 highs.
• USD/CNY exchange rate fluctuated narrowly around 7.12–7.14, supporting price stability.
• Ocean freight (Qingdao, China outbound) declined slightly across major lanes, notably to Europe and Southeast Asia.

1) Raw Material: Steel Scrap Trends – Cost Relief Continues

Steel scrap remains the core raw material for producing cast steel shots and grits. In September:

• Domestic heavy melting scrap (Shandong): ~¥2,520/ton, slightly lower than August.
• Global benchmark (CFR Turkey HMS 1/2): $338.5/ton, reflecting a mild 2.1% drop M/M.
• China’s ferrous scrap index remains rangebound, supporting predictable melt costs.

💡 Takeaway: With stable scrap prices, no major cost pressures are expected on standard shot/grit sizes like S280–S390 and GL/GH 40–60 HRC ranges in Q4.

2) Electricity: Shandong Prices Remain Stable

As our plant is located in Zibo, Shandong Province, local industrial electricity rates directly affect production cost, especially for melting and heat treatment processes. In September:

• Average industrial electricity price (Shandong spot): ~0.72 RMB/kWh, holding steady from August.
• Ongoing market-based pricing reforms in Shandong continue to prevent sharp spikes seen in other provinces.

💡 Takeaway: Predictable power costs ensure on-time production and stable quotations, particularly for high-hardness and multi-stage tempered media.

3) Exchange Rates: Minimal FX Risk for USD Buyers

• USD/CNY held in a narrow band 7.10–7.14 throughout September, offering excellent price predictability for international buyers purchasing in USD.
• EUR/USD: Traded between 1.164–1.187;
• USD/JPY: Ranged 148–150, mildly favoring Japanese importers.

💡 Takeaway: For USD-settled deals, exchange-driven price fluctuations are minimal. We can also offer EUR or JPY quotes upon request with short-term lock-in options.

4) Sea Freight: Qingdao Rates Slide Slightly

Given Qingdao is our primary port of shipment, we monitor outbound rates weekly. Key trends:

Route	Sep Avg (40HQ)	MoM Change	Note
Qingdao → Rotterdam	$2,210	↓ 3%	Lower spot rates benefit bulk shipments
Qingdao → Ho Chi Minh	$865	↓ 5%	Stable equipment availability
Qingdao → Los Angeles	$2,195	Flat	Minor rate fluctuations
Qingdao → Jebel Ali	$1,650	↓ 2%	Competitive vs Q2 peaks

💡 Takeaway: Buyers can save $50–150/container by consolidating SKUs or booking with flexible ETD. We’re happy to quote side-by-side rates (FOB + CIF) for transparency.

5) Domestic Demand & Output: Improving but Not Overheating

• China’s NBS Manufacturing PMI rose to 49.8, still below 50 but showing signs of stabilization.
• Private Caixin PMI showed slight expansion, largely driven by export demand.
• Steel mills in North China remained cautious but operating steadily, ensuring reliable raw material flow.

💡 Takeaway: You can expect stable supply, reasonable lead times, and no production disruption risks in Q4.

🧾 What This Means for You – Pricing Outlook

1. Stable Pricing Expected in October. With steel scrap and energy costs remaining stable in Shandong, we do not anticipate price increases for steel shots, steel grits, or stainless media in October. Most specifications will retain September’s pricing levels, offering predictability for your Q4 planning.
2. Selective Discounts on Mainstream Sizes. For standard sizes like S230–S390 and GL/GH grades, we are offering volume-based discounts and early-booking benefits. These apply to both container-load and LCL orders depending on your mix.
3. Low Exchange Rate Volatility = Pricing Confidence. The narrow USD/CNY range throughout September provides a stable FX foundation, allowing us to extend firm USD quotes with minimal buffer. For EUR and JPY buyers, we can quote in local currency with limited FX exposure.
4. Freight Pressure Easing = Lower Landed Costs. Slight declines in Qingdao outbound freight rates—especially to Europe, Southeast Asia, and the Middle East—are helping to offset fuel surcharges, resulting in better total cost of ownership for FOB and CIF options.

💡 Bottom Line:

Now is a good time to lock in Q4 prices, especially if you’re sourcing high-consumption grades. With upstream costs under control and FX/freight volatility limited, your procurement cost risk is lower than in previous quarters.

🔍 Ready to Quote?

Whether you’re:

• a distributor preparing for year-end restocking, or
• an end-user needing tailored solutions for blasting or peening,

We’ll prepare custom quotes within 24 hours, based on:

• Current freight trends from Qingdao
• Today’s FX rate
• Available production slots