Steel Products Price Update

The current price of mainstream hot rolled coils in the Ruhr region is 700 euros/ton EXW (October delivery), which is 50 euros/ton higher than the previous offer. But it remains to be seen whether demand will be able to sustain such a rise, as August is the European holiday season and buyers return to the market in September, and it will take time for demand to recover. From the Turkish side, with the rise in the price of imported scrap since this month, several Turkish material factories have slightly increased their offer, to about 20,000 lira/ton, although the actual demand in the market is sluggish. At the same time, the offer for exports has also risen, and the current official offer price of leading steel mills is 570-600 US dollars/ton, but the price is far from the actual transaction price in Asia, and the transaction is very limited. Forced by sluggish demand, a Turkish steel producer chose to carry out a one-month overhaul, due to the continued depreciation of the lira, domestic electricity prices may continue to rise in the next month, superimposed scrap prices have risen in recent weeks, which makes production enterprises feel pressure, or lead to a further decline in future production saturation.

Chinese Steel FOB Price (Unit: USD/ton)
Type	Port	August 25
Hot Rolled Steel (SS400)	Tianjin Port	555
Cold Rolled Steel (SPCC)	Tianjin Port	638
Hot-dip Galvanized	Tianjin Port	715

Hot rolled coil: This week, the domestic mainstream general coil export prices are generally stable, and steel mill quotation differentiation is still large. Some large factories are still quoted more than 560 US dollars/ton FOB, and some small factories are quoted about 550 US dollars/ton FOB, The order counteroffer price from Southeast Asian customers is low this week, but considering that some Chinese steel mills or will have a certain degree of passive production reduction in September and October, so overall, Chinese steel mills are willing to promote exports through price cuts. The export price of Russia’s general volume is basically the same as that of Chinese resources, and some Middle Eastern buyers prefer Russian resources due to freight advantages.

Rebar: This week in East China, the price of British standard rebar is $545 / ton FOB, and the wire is $550 / ton FOB, and the transaction price has a certain float. From the overseas perspective, China’s rebar has obvious advantages. Due to the recent strengthening of international scrap prices, Turkish steel mills have raised the export price of British standard rebar, and some resources have been quoted more than $580 / ton FOB Marmara, which has indirectly led to an increase in overseas customers’ inquiries for Chinese rebar.