How FOB Steel Pricing Actually Works
Steel is a commodity, and FOB China prices move, sometimes weekly. Buyers new to the market often misread this as suppliers being cagey about price. It is not cagey; it is how the market works. Understanding the mechanics makes you a sharper negotiator.
What Moves the Price
- Chinese domestic demand: when domestic orders are strong, export offers rise with them.
- Raw material costs: iron ore and coking coal prices pass through to finished steel within weeks.
- Nickel content: the main driver of the 304 vs 316L price gap.
- Order size and mill loading: custom-rolled sizes cost more than scheduled production.
How to Compare Offers Honestly
Always compare price, validity window and standard together. An offer of $495/ton valid for 3 days is not the same as $505/ton valid for 10 days. And an offer without a mill test certificate clause is not comparable at all, because re-testing at destination costs more than the difference. Every Angesen quotation states the grade, the standard, the certificate type, the validity window and the loading port, so the comparison with any other offer is line by line.
For current reference bands across our five categories, see the carbon steel, stainless steel, steel plate and steel pipe product pages, or request a live quotation through our contact form.