Steel Material Price Update

Recently, the international steel price performance first rose and then fell. In Asia, including China, Japan, Turkey, and India, including large steel mills, sheet metal factory prices have been reduced. Southeast Asia-led steel mills generally have stable prices, but due to currency depreciation, their dollar prices are mainly falling. Europe and the United States are usually stable, the inventory in southern Europe is at a low level, steel mills are pulling up, and the market has followed up, but the overall pace of trading is slow. Due to the continued weakness of buying, China’s export prices have also followed the decline, steel mills are more active in export orders, and offshore prices have fallen slightly.

Overview Of China’s Steel Export Market

Hot-rolled coil exports: Since this week, China’s hot-rolled coil export prices have weakened, leading steel factory prices to fall last week at 5-10 US dollars/ton, turnover deviation, basically into the December shipping schedule, it is expected that the export orders in November and December shipping schedule are weaker than in October. Some of the larger orders for Southeast Asia show that the SS400 hot rolled coil transaction price is 525-530 US dollars/ton CFR, and the CIF quotation for South Korea is concentrated in 535-540 US dollars/ton CFR, which is difficult to close.
Medium and thick plate exports: This week, China’s billet export orders are significantly weaker, The leading steel mill’s offer prices are stable, but some North China resources after the price cut pulled down the transaction level, such resources SS400 medium plate transaction price in 530-540 US dollars/ton FOB. SAE1006 middle board Southeast Asia CIF transaction price at $545 / ton FOB, the overall transaction level is not reasonable.

Hot-rolled Coil Price

Hot-rolled coil price on October 20, 2023 (unit: US dollars/ton)
Ex-factory price of steel mills in the American Midwest	790
Imported from the United States (CFR)	710
EU steel mill ex-factory price	638
EU imports (CFR)	627
Japan export (FOB)	560
Turkey export (FOB)	640
China Export (FOB)	528
India export (FOB)	620
Southeast Asia Imports (CFR)	524

Export Price Of Hot Rolled Coil In The International Market

Chinese export

China’s hot-rolled coil export quotation is stable, but the buyer demand is poor, and the transaction is average. Vietnam importer feedback received China Q235 hot-rolled coil price of 524 US dollars/ton CFR, Q355B hot-rolled coil price increase of 17 US dollars/ton. Q195/Q195L with a thickness of 3mm is quoted at $520/ton CFR, 2.5mm hot-rolled coil with an additional price of $7-10/ton, 2.75mm with an additional price of $4/ton, 2.8mm with an additional price of $3/ton, and the shipping date is December. The A36 hot-rolled coil is quoted at $552/ton, and the A572 hot-rolled coil is quoted at $580/ton. The SS400 hot-rolled coil mainstream price is 525-530 USD/ton CFR, and the buyer’s inquiry is 522-523 USD/ton CFR.

Southeast Asia

Demand for hot-rolled coils in Vietnam remains low. SAE1006 non-finishing hot-rolled coil and tube grade SS400 hot-rolled coil offer reduced to 575-590 US dollars/ton CIF Ho Chi Minh City, SAE1006 Finishing hot coil offer reduced to 580-595 US dollars/ton CIF. In terms of imports, China’s SAE1006 hot-rolled coil mainstream quotation is 570-575 US dollars/ton CFR, and Japan’s quotation is 580-585 US dollars/ton CFR. However, due to factors such as price and delivery cycle, buyers tend to purchase local resources.

India

Due to a public holiday in India, demand was weak in the western and northern parts of the country and moderate in the south. The spot price of hot-rolled coils in India was Rs 57,500/ton ($703/ton) EXW, down Rs 1,000/ton on a week-on-week basis. Despite rising raw material prices, market participants expect Indian steel mills to maintain current domestic prices. With elections coming up in several states, projects in infrastructure and other areas could be put on hold. The bank holiday is approaching, during which the market may be short of funds, and demand may slow further.

This week, the Indian import market is more active, because the price difference between imported resources and local resources is as high as 2000 rupees/ton after the rise of local steel mills, driving the increase in import demand. Bureau of Indian Standards (BIS) certified Chinese hot-rolled coil quotes reduced to 580-585 USD/ton CFR, not certified hot-rolled coil quotes as low as 570-580 USD/ton CFR, December shipment. Since it cannot be sold in India, the latter is mainly for export.
On the export side, buyers tend to buy domestic resources due to the lower prices of local steel mills in Europe. India (S275, 3mm) export quote maintained at $685-695/ton CFR Antwerp, has not heard of a deal. Local buyers have ample inventory, and restocking demand is expected to pick up after November.

The Middle East

Due to the continued downturn in the construction industry in Saudi Arabia and Qatar, coupled with their high-interest rates, the demand for steel in the Middle East and North Africa is still decreasing, and the steel supply and demand relationship is expected to become weak, and the hot volume transactions in both countries continue to be cold.
China’s hot-rolled coil mainstream offer is 570-585 US dollars/ton CFR UAE; South Korea’s hot-rolled coil offer for January shipment is 595 USD/ton CFR UAE; Japan’s hot-rolled coil offer for January shipping is 595-600 US dollars/ton CFR UAE, down 5 US dollars/ton week on week. Uae hot-rolled coil prices are $570- $605/ton CFR, down slightly from $570- $595/ton CFR last week. During the same period, China’s hot-rolled coil quotes were 620-640 US dollars/ton CFR in Saudi Arabia.