In China, HRC prices (2.3mm x 4 x 8) have been volatile for the last week. Prices were recorded between USD 634-641 on July 23-31 and closed moderately higher at USD 641 on July 31. This was also the highest level in a month.
During the week of July 23-31, China's domestic galvanized steel sheet prices generally showed a downward trend with moderate fluctuations. Hovering between USD 623-645, prices closed at USD 624 on July 31. Galvanized sheet prices have been on a downward trend since early June.
In July, HRC prices (IS 2062, 2.5-8mm) in India fell by 3% on a monthly basis from INR 53,800 (USD 643) to INR 52,300 (USD 625) per ton.
Higher imports from Vietnam and China kept domestic prices under pressure in India. The country became a net importer of steel in the first quarter of the 2024-25 fiscal year, while HRC imports are expected to increase by around 85% in the second quarter. In June alone, imports surged by over 20% from the previous month as domestic buyers opted for cheaper imported steel.
HRC and CRC imports are expected to increase from 0.33 million tons in June to 0.36 million tons in July. Recent deals for HRC from India at USD 562-566 per ton CFR India may continue to weigh on prices. However, there is a possibility of a slight recovery in both long and flat products in the post-monsoon period. In flat products, factors such as Chinese Customs' crackdown on steel exports and Vietnam's lower export prices hurting local producers may ease import pressure starting from October. Moreover, higher demand during the festive season in October may also support prices.
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