Rusmet.ru, Victor Tarnavskiy/ In late July-early August different suppliers’ prices approach was a strong trend of East Asia market. Chinese companies switched to boron micro alloyed steel supplies and increase the prices for it after the ban for VAT refund for some kinds of rolled steel export. At the same time Japanese, Korean, and Taiwanese companies, on the contrary, decreased its pieces due to low demand. In early August, when Chinese HR steel was offered at $590-600 per ton FOB, East Asiamanufacturers reduced the prices to $600-630 per ton FOB. The cheapest product in regional market was Russian steel at $590-610 per ton CFR.
However, by the middle of the month the situation changed. Chinese companies continued to increase their products prices, as in domestic, as in foreign market. In recent days the prices for Chinese HRC reached $600-635 per ton FOB, the prices for commercial plate reached $630-645 per ton FOB. In IndiaVietnamand Korea Chinese HRC are offered at $620-650 per ton CFR. According to the analysts the increase in Chinese market has not completed yet. Thus, we can expect further export prices increase to the end of August., ,
Meanwhile, in regional market there is a rally. Consumers in KoreaTaiwanand in some South-east Asiacountries steered to conclude contracts for Sep.-Oct. However, the market participants are not very optimistic. Japanese market players beware of the “second wave” of the recession this autumn. Nevertheless steel consumption in the end of the year is expected to be rather stable. , ,
In this connection some East Asiacompanies announced export prices increase in August by $20-25 per ton. In particular, the prices for Korean and Taiwanese HRC grew to $640-670 per ton FOB. Russian products are offered at $630-660 per ton CFR for Sep.-Oct. and can further increase. Japanese companies are not so active, since they face problems in domestic market. According to traders, there is Japanese flat steel in the region at $610-630 per ton FOB, which is comparable with Chinese prices.
By all appearances the growth in Sep. will be limited in the region. The prices are unlikely to jump high. The consumers are careful which is based on raw material prices decrease forecast. Recently iron ore spot prices are growing. According to the analysts they are close to the peak, which will be followed by a new decrease. Contract prices in the Q4 are likely to be lower than in the Q3. Coking coal price in the end of the year is expected to stop increasing.