Weak Flat Rolled Steel Market Price in Asia

Flat rolled steel market price continues decreasing in Asia. Japanese trade firm sources said the hot rolled coil price is around CFR US$ 800 per tonne, which is US$ 30-40 lower than a month earlier level. The price would decrease more when some South Korean steel makers’ export offer price is as low as US$ 770 for Middle East. One trade firm source sees the economy growth is slowing in emerging countries when China and other Asian countries increased interest rates in March and April.People’s Bank of China increased the interest rates by 0.25 percentage points to 3.25% for one year deposit and to 6.31% for one year loan rate, announced on Tuesday. The bank tries to fight against inflation through the interest rate increase, which is second attempt in the year and 4th increase since October 2010. The rates recently increased in other Asian countries including Vietnam, Taiwan, South Korea, and Thailand.Asian steel supply gets loose recently when the financial squeeze slows Asian steel demand. The slower demand could impact on Japanese steel makers when the makers have increased the export to Asia. However, Japanese industry sources see the steel market price in Asia would rebound in short period of time when the steel users’ inventory keeps normal level and the steel makers could not significantly reduce the selling price under higher raw material cost for April-June.