Global Flat Steel market is not picking up as expected, Market is still under pressure of low demand and is struggling with supply-demand economic fundamentals.
It has been noted that US market has again weakened on slipping demand from the market. Traders have slashed purchase as the products will be delivered in late October. Neither dropping Midwest Scrap prices (down USD 10-12/MT) are provoking Flat producers. However, small producers have evoked the stiffer completion in domestic market which leads to price drop of Flat Steel.
UK's Flat Steel market also remained stable and is expected to improve and price rise is possible in coming weeks in domestic and International offers.
On the other side Asian market leader, China's domestic Flat Steel is moving on bleak future as demand has been dropped, stockiest are over supplied and also Iron ore prices are falling, which is pulling prices down but producers are trying to keep prices same and closing deal at same levels till end of September. Whereas with no positive indication it is expected that market will slip slightly and prices will come down.
South Korean Flat Steel market also slowed because of national holidays and so the regional buying has been dropped. Therefore exporters are holding prices at the same level.
Apart from all Japan's domestic Flat Steel prices are moving up which is attributed by the depreciation of Yen and increasing raw material cost. Scrap prices has gone up by USD 18-22/MT which is pushing producers to increase prices. On the dull international demand, Japanese Steel is incompetent in market.
The buyers from South East and Middle East are holding their purchase as they are anticipating Flat Steel prices to come down.
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