In the Far East region, prices of iron and steel products, especially in China, followed a fluctuating course.
China
Steel prices vary in China, the world's largest steel producer.
Considering iron ore, although it decreased compared to yesterday and fell to 103 USD as of April 4; increased on a weekly basis. Market analysts stated that there was a noticeable increase in demand due to the upcoming public holiday, which played an important role in increasing iron ore prices. In addition, Chinese buyers stated that the market will be closed on Thursday and Friday due to "Grave Sweeping Day", which is the country's public holiday, so all purchases are stuck in the first days of the week.
As of April 4, May iron ore price was 99.65 USD per metric ton on the Singapore Exchange, with a decrease of 1.9%.
Looking at rebar, on April 2, China rebar prices stopped their gradual decline and started to rise with the increase in sales. Although the increase in sales was not large, there was a slight improvement in the rebar market. It is anticipated that these fluctuations in prices will continue for a while. The price of HRB400E 20 mm rebar increased by 3 USD to 500 USD including VAT.
Looking at billet offers, prices in billet offers also increased due to the increase in steel indicators in Shanghai. Price quotes for 3sp billet reached approximately USD 485 FOB. Concerns about the stagnation in demand and hesitant behavior still continue.
While approximately 200,000 tons were traded last week, China's billet Taiwan CNF reached $490/ton and freight was traded at $15/ton, giving signals of instability.
India
The increase in steel exports of India, one of the countries that play a decisive role in the steel market, brought about a visible recovery of the Indian steel market.
While there have been improvements in India's steel exports since February, imports have also remained stable. The country maintained its position as a net importer, with imports exceeding exports by approximately 1 million tons.
The most exported product was hot rolled coils and strips, accounting for approximately 39% of the volume. Flat product exports increased by 16% annually to 5.9 mt, while non-flat products decreased by 7% annually to 0.7 mt. Italy, Spain and Belgium were the three largest buyers, while Europe accounted for 45% of India's exports.
Looking at the HRC market, one of India's important steel products, market participants speaking to SteelRadar stated that demand continues at moderate levels. Many actors predict that there will be an increase in demand after the elections in India. Currently, India HRC is at 623 $/t EXW levels.
Looking at scrap prices, we started March at 388 USD; It dropped to 381 USD on March 31. Currently, HMS1 quality scrap started April at 382 USD.
Vietnam
There have been no significant improvements in the Vietnam steel market since early 2024. The stagnation in the real estate market delayed the expected increase in demand and created a stagnation in iron and steel trade and supply. Although the construction season has already started in the country, the expected vitality in the market cannot be achieved and the negative atmosphere in businesses continues. In addition, a visible slowdown in production brings many factories to the point of shutting down their furnaces.
Cheap steel from China also negatively affects the Vietnam steel market. In the first two months of 2024, China's steel exports increased by 32.6% and reached 15.9 million tons. This situation reduced world steel prices by 12.4% to 3,521 CNY/ton.
Market experts state that the expected recovery in Vietnam is possible, but there are many key points such as the US Federal Reserve's interest rate reduction policy and the global economic recovery.
Looking at Vietnam's most traded HRC market, according to the Vietnam Steel Association, hot rolled coil demand is increasing rapidly but domestic production cannot meet the demand. The country imports HRC produced by only two companies, which is insufficient to meet domestic demand. Leading steel company Hoa Phat appears to have reduced its domestic prices by around $40/ton due to weakness in the HRC market. It is known that the company offers prices for SAE1006 and SS400 quality HRC at 550 USD CFR South Vietnam levels.
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