Asian steel price difficult to rise

In Southeast Asia, HRC import market in the doldrums. Japan and Korea Resources reported $ 540 / ton (CFR), low turnover of $ 10 / t. Because too large decline in China Resources recently, Mills seek price increases $ 15 / ton (CFR) to reach $ 530 / ton (CFR), but the Southeast Asian market is the rainy season, the terminal steel industry demand is low. In current market conditions Southeast Asia steel price is difficult to higher in the short term.

In India, the hot coil market sluggish. Due to weak international market, domestic financial constraints, market continued pessimism, coupled with continuous heavy rains hit India, market demand fall into sluggish. Currently local HRC ex-works remained at 33750-34250 rupees / tonne (566-575 U.S. dollars / ton), which remained unchanged since early April.

In Korea, the steel market remains weak, HRC market decline. Pohang retail price of hot rolled SS4003mm in the local market in May fell 20,000 won / t ($ 18 / t) to reach 73-74 ten thousand won / ton (648-657 U.S. dollars / ton). Chinese resources export prices to South Korea also in decline, SS400B3mm HRC prices is 515 U.S. dollars / ton (CFR), which fell nearly 40 U.S. dollars / ton in May. As the demand outlook is not optimistic, combined ore prices fall caused the costs support of steel prices reduced. South Korean domestic hot rolled coil prices and import prices may further decline.

Korean deformed bar market weakness. Local SD40010mm deformed bar retail price is 66-67 ten thousand won / ton, unchanged for 3 weeks. Currently the local construction activity to become more active, but with the advent of summer, the market demand is expected to soon fever. Although production of deformed bar has cut during the summer, but low demand for local and export markets offset benefits of reduction of output. South Korea is expected in the next two months deformed bar market is not likely to rise.

In Japan, steel section market keeps stable. Tokyo market SS400 H-beam price of about 7.0-7.1 big ten thousand yen / ton (737-748 U.S. dollars / ton), which remained unchanged since mid March, compared to beginning of the year just improve ¥ 2,000 / t ($ 21 / t). In view of the local construction industry, it has robust demand so the Japanese steel section prices will slowly rise.

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