Asian Steel Market Price Becomes Upward Trend by Steel Makers’ Price Hike

Asian steel sheet market price is strengthening upward trend when major Asian steel makers, JFE Steel and Bao Steel announced steel products prices for January-March 2011 due to rising raw material price. Offer price by Chinese steel makers seems to increase by US$ 20-30 per tonne to South Korean re-rollers for the shipping in January from December 2010. Overseas steel users is increasing bid price to Japanese steel makers step by step. Asian steel users reduced stock of steel sheet for measure of price risk, and are starting purchase of steel sheet when the market price is likely to rebound.

Spot steel sheet price dropped to US$ 600-630 per tonne for hot rolled coil, US$ 670-680 for cold rolled coil, while is increasing to US$ 630-660 for hot rolled coil and over US$ 700 for cold rolled coil.

However, there are many elements of instability that Chinese crude steel output is over 600 million tones in 2010, Chinese government reduces price of commodity by credit restraint and South Korean makers are expanding capacity. Consequently, the market price isn’t clear in the future that the market price rises or not monotonously.