Rebounding Asian Sheet Steel Market

Asian sheet steel market shows sign to rebound when hot rolled coil offer price is CFR US$ 640-650 per tonne in the week, which is US$ 20-30 higher than the level in the beginning of the month, according to Japanese trading firm source. The price apparently recovers when the buyers restarted the purchase activity when Chinese steel market price hit bottom and Chinese major steel makers are expected to increase the domestic selling price for September.

Asian sheet steel market price started to decrease in May under higher steel inventory and decreasing steel price in China. The price decreased by more than US$ 100 per tonne from the recent peak. However, steel inventory adjustment progresses in Asian countries. Some steel buyers didn’t purchase sheet steel in July-August but they show appetite in and after September.

Japanese major steel makers apparently reduce the hot coil export price by around US$ 50 to less than FOB US$ 700 per tonne for August and September shipment compared with July shipment level. However, the price drop is marginal due to the recovering market mood. The steel makers are likely to seek higher price for October shipment.

However, iron ore quarterly price would decrease in October-December from US$ 147 per tonne in July-September. The sustainability of the steel price recovery is still uncertain.