Chinese Steel Mills Revise Flat Steel Offers

Chinese steel makers hiked up finished flats prices by $15-20/ton this week. The current offers for HRC in China stand at $685-690/ton at against $665-675/ton CFR last week. The major reason behind price hike came out to be a better in-house realizations and significant amount of bookings from Vietnam at elevated prices.

Vietnam Market

Vietnamese buyers are purchasing domestic steel supplies at higher prices as demand for steel in the country continues to improve. Major domestic steel makers have reportedly sold out their allocations for April and early-May 2023 sales, despite increasing prices by $62/ton month-over-month to $702/ton CIF Ho Chi Minh City. This reflects optimism for further price hikes in the coming weeks, driven by an improving demand outlook. Despite the higher prices, Vietnamese buyers are still showing strong interest in purchasing steel as they try to secure supplies amid concerns over possible disruptions in the global supply chain.

European Market

The demand for Vietnamese value-added flat steel products in Europe remains a significant opportunity. Vietnamese re-rollers and downstream processors are keen to explore export opportunities in the region, especially after the Turkiye mishap. There is a potential boost to demand and prices for both domestic and imported HRCs as the European Commission has yet to announce how it plans to handle the import losses resulting from Turkiye’s situation. This presents a promising opportunity for Vietnamese businesses to expand their customer base and establish themselves as reliable suppliers of high-quality steel products in the European market.

Indian Market

Indian mills are not yet unaffected by China’s hike in HRC prices for international trade, and they are anticipated to make greater proposals in the following week earlier. Domestic consumers were therefore observed establishing their purchasing positions in the market.

Other Markets

In the global market, major suppliers of finished flat steel products, such as Japan, South Korea, and Russia, have been relatively quiet. Japanese and South Korean mills are concentrating on opportunities in the US market, and no offers have been heard from Russia recently. Chinese steel manufacturers have seized this opportunity to gain a significant advantage in the market.

Insight

According to market participants, Chinese mills are expected to increase their quotes in the overseas market due to improved domestic demand and prices. This is likely to affect prices from other exporting nations as well. As a result, imported HRC offers to Vietnam are expected to increase in the near future due to firm global HRC prices and an anticipated sustained demand in overseas markets.

Read more: https://www.ofbusiness.com/blogs/indian-steel-market-receives-mixed-trend/22178