Asian steel markets expected to receive limited support in Q3

Asian steel markets are expected to receive limited support in Q3 2024 due to weak seasonal demand and continued negative forecasts for the real estate and construction sectors. HRC and scrap prices are also expected to remain under pressure due to weak demand and raw material prices.

Steel mills in Japan and South Korea are forced to rely more on exports due to weak domestic demand and depreciating local currencies. This is causing China to lose its markets for HRC in Japan and South Korea.

Weakening exports have put pressure on China’s HRC prices in the second quarter of this year. The country’s billet exports slowed down somewhat in late May due to reduced competitiveness, but the situation changed in July. Local prices fell due to weak demand and the rainy season, and this trend is expected to continue in the third quarter. Rolled steel product exports continued to increase, indicating that domestic demand was not able to meet high production.

Domestic steel prices in China are expected to remain low until the end of the summer due to weak demand and high production.

Scrap prices continued to fall in the second quarter due to high electricity prices and weak demand in Asian countries. Purchasing activity in Taiwan, Vietnam, and South Korea was also slow, and this situation is expected to continue until the end of the third quarter.