Weak demand pushes down Chinese and Russian HRC export offers. While Japanese HRC prices remains high owing to increased demand for high-quality steel.
The downtrend in China and CIS countries’ flat products prices continued this week with CIS-origin flat products prices registering a fall of USD 5-20/MT against previous week.
Current offers for HRC (commercial quality) from CIS countries are assessed at USD 385/MT, FoB Black Sea.
HRC offers from China also dipped by USD 5/MT against previous week. Current HRC (A36) offers are heard at USD 330-335/MT, FoB China basis.
The recovery in China’s domestic and export market was temporary during which its flat steel prices recovered by USD 100-150/MT. However, because of weak demand and pessimistic outlook, prices are once again falling to previous levels.
At present, buyers are in wait and watch mode and are anticipating further fall in prices.
India’s HRC export offers have also registered a fall of USD 20-30/MT and are currently being heard at USD 410-420/MT, FoB India basis, against last offers of USD 440-450/MT, FoB India.
Increased Demand for Japanese Steel
If market sources are to be believed, Japanese mills are able to sell HRC at higher prices as compared to their Chinese and Russian counterparts.
This is because of growing demand for high quality steel that is manufactured by Japanese mills coupled with supply constraints. With trade barriers being imposed on China’s steel products in Malaysia, India, and various other countries, Japanese mills are targeting Asian countries.
Japan-origin HRC which is majorly used in automobile sector is heard at USD 450/MT in Asia outside Japan. The country has increased its steel exports to Philippines where increase in construction activities are recently being heard.
No Fresh Offers from Korea
Steel exports from Korean steel major, Hyundai Steel have slowed down considerably because of the trouble with one its blast furnaces at its Danjin plant. The company has to procure HRC from other steel manufacturers as its normal output dropped to 30% of the total production capacity. However, operations of blast furnace is expected to normalize very soon from early next month.
Currently no fresh HRC offers are being heard from Korea since late May. However, as per market sources Korea’s largest steelmaker POSCO plans to hike the price of hot rolled steel plates by 30,000 won (USD 26) per ton next month.
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