[SMM Analysis] Global Steel Market Weekly Review Issue 12
Steel prices moved down first then up last week, while export prices fluctuated rangebound. As of February 4, China's HRC FOB offers stood at $467/mt, and steel billet at $440/mt. Market transactions showed that order-taking momentum for steel billet improved compared to earlier periods, with traders preferring to secure downstream orders first before opportunistically sourcing from upstream suppliers. For sheets & plates, order intake remained robust over the past two weeks; however, following this week's price decline, traders' willingness to sell weakened. Some steel mills in north China faced scheduling pressure, and a few product varieties temporarily suspended offers.
Overseas markets, Southeast Asia: Vietnam, in particular, is currently a region with robust demand, as accelerated infrastructure construction directly boosted construction steel prices. Capacity expansion by local leading enterprises such as Hoa Phat Group is altering the regional supply landscape and enhancing the competitiveness of domestic products. Meanwhile, the CFR transaction price for China-origin wide coil to Vietnam was referenced at $485-490/mt, up WoW from previous levels, mainly benefiting from pre-Chinese New Year local procurement demand release.
Middle East market: Market sources indicated that billet exporters, after pausing due to political and internet restrictions, are gradually returning to the market, with KSC planning to tender large volumes of steel billet and slab. Recent exports of sheet & plate products from China to the Middle East also increased, with current HRC CFR prices around $500-505/mt. The demand center in the Middle East is shifting, as Saudi Arabia moves from pursuing landmark mega-projects toward more pragmatic logistics, mining, and industrial infrastructure, which could represent potential demand growth points for pipe materials.
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