The global sheet market has faced a new challenge due to the decline in demand in all major markets. Vietnam has been largely paralyzed by lockdowns in the country's largest cities. In the European Union, major suppliers have nearly exhausted their quota for the third quarter, and most consumers have contracts through the end of the year. Many countries in Turkey, the Middle East and Latin America purchased large quantities of steel products in August and therefore took a break.
It is getting harder and harder for metallurgical companies to find buyers. Some are betting on domestic markets. Thus, the decrease in steel production in China contributed to a slight increase in rolled product prices. Indian producers are expecting the end of the rainy season, which occurs in late September and early October. However, not everyone can compensate for the decline in export supply with domestic sales.
Overall, flat rolled prices continue to decline in most regional markets. However, the decline is slow. The new discounts are already not helping sales much, as competition has weakened somewhat due to weak demand and the de facto suspension of Chinese hot rolled steel exports. Also, metallurgists have hope for a recovery in Asia in October if local governments ease the lockdown regime.
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