Asian Flat Rolled Steel Market Price Peaks

Flat rolled steel price is peaking in Asia. The price increased by US$ 150-200 per tonne for hot rolled sheet, cold rolled sheet and electrogalvanized steel from the beginning of the year. However, the price stopped increasing last week. Japanese integrated steel makers and trading firms, which aim to increase the export price by more than US$ 250 for April shipment from March, are concerned about the market mood.

Flat rolled steel spot export price from Japan for Asia is slightly more than US$ 800 per tonne for hot rolled sheet, slightly less than US$ 900 for cold rolled sheet and slightly less than US$ 1,000 for electrogalvanized steel. The buyers are apparently reluctant to approve higher price.

The dealers in Asia, which hold flat rolled steel inventory, reduce the selling price when Chinese government is raising interest rate to control inflation, according to trader source.

However, supply and demand are tight in Asia and the demand for Japanese integrated steels’ product is firm. Some of integrated steels watch market price when they implement outage in April.