China
China's steel market, the world's largest steel producer, has experienced negative developments this week. Lower-than-expected demand and early rains in some regions had a negative impact on prices.
According to the closing prices on April 23, the most active September iron ore contract on the Dalian Commodity Exchange fell 1.91% to USD 117.17 per tonne. Coking coal and coke prices fell 3.13% and 1.76%, respectively.
The May iron ore price on the Singapore Exchange fell 2.88% to USD 112.85 per tonne.
Declines were also dominant on the Shanghai Futures Exchange. Rebar prices fell by 0.84%, hot rolled coil, and wire rod by 0.68% and stainless steel by 2.28%.
Market analysts noted that rising inventories in the run-up to the May 1 holiday drove prices down.
The country's steel demand is expected to remain sluggish in the second quarter despite a slight increase in production. This is due to exports of semi-finished and finished steel, which reached their highest level in almost eight years in March. Although steel production increased in the second quarter, it is expected to remain low compared to a year earlier and continue to affect iron ore prices.
In March, China's steel exports rose by 29.8% year-on-year, while steel output fell by 7.8%. Domestic steel consumption also fell significantly due to weakness in the real estate sector and infrastructure projects.
Lower domestic demand led to lower blast furnace utilization rates and increased iron ore stocks, affecting iron ore prices. Despite the expectation of a slight reduction in stocks, weak demand is likely to persist and cause price volatility.
India
According to data received on April 18, major rebar producers in India have raised their prices three times this month, with a total hike of USD 18-24 per tonne.
Domestic rebar prices of primary producers were assessed between USD 639-651 per tonne. The price hike was in response to the upward trend in raw material costs such as iron ore, scrap, and sponge iron, which have increased by USD 6-42 per tonne since early April.
Demand in the local steel market in India remained subdued in February and March, but with the start of the new fiscal year in April, buyers returned to restock, it said. The slow buying activity in the previous months was attributed to the general elections in April and May, which led to a lack of financing for infrastructure projects. However, it is known that buyers started stocking up in April in preparation for the monsoon season, which starts in June, and therefore demand and prices for all products increased this month.
Some experts in the industry predicted that the increase in demand will stabilize in the coming weeks and prices will enter a downward trend in May. Moreover, Indian secondary producers also raised their rebar offers by USD 585-627 per ton in a similar price range.
Experts noted that steel prices are largely dependent on China's steel exports. They suggested that expected production cuts in China could stabilize global prices, including in India.
Local steel prices in India rose slightly to USD 640.80 per tonne in April from USD 630 per tonne in the previous month. In contrast, Chinese steel export prices to India fell to USD 559 per tonne in early April from USD 609 per tonne in January, indicating continued price pressure on Indian offers.
Vietnam
According to recent steel market records, many big steel companies such as Hoa Phat, Viet Nhat, Viet Y, Viet Duc, Viet My, Kyoei Vietnam have announced price cuts.
The price of CB240 steel coil and D10 CB300 rebar has been reduced by many enterprises by another USD 4 per ton. The total value of the price cuts reached USD 27.
After this price cut, the current price of CB240 steel coil and D10 CB300 rebar in 3 regions fluctuated around USD 546-558. It was noted that these prices are lower than in previous years.
The recent price declines in rolled steel have not had a strong impact on the market. This is because this type of steel accounts for about 26% of the construction steel consumption products in the local market. Overall consumption is increasing, but still low compared to the same period last year.
Especially recently, a lot of mixed opinions have emerged regarding the launch of an investigation and imposition of anti-dumping duties on imported hot-rolled steel (HRC) products. Enterprises in the galvanized steel and steel pipe industries, as well as consumers, are awaiting the final outcome from the authorities with inspection data, specific analysis, and objective assessments.
Taiwan
In Taiwan, leading steel producer Feng Hsin Steel Co., Ltd. announced its prices for this week.
Rebar remained at USD 611.7, scrap at USD 337.9, and steel section at USD 827.7. Last week, rebar and scrap prices were cut by USD 200 per ton, while profile prices remained stable.
According to data from SteelRadar, the rebar price for θ12-32 mm rebar was observed at USD 592 per ton as of April 24. This corresponds to the lowest price in the last 3 months.
As for HMS ½ grade scrap, prices are generally stable. The April 24 price was recorded at 354 USD.
Looking at this picture, it can be seen that Taiwan's steel market has not seen any price increases for a while and has been trying to keep the existing prices stable.
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