[SMM Analysis] Global Steel Market Review

[SMM Analysis] Global Steel Market Review

Last Friday, China's steel export prices surged by $4-10/mt. In the Thai market, import prices for cold-based galvanizing, hot-based galvanizing, and industrial wire rods also increased, with a WoW rise of $5-30/mt. The main reason for the steel price hikes was that the steel varieties circulating in these local Thai markets were mostly from Chinese resources. Therefore, as domestic prices in China surged rapidly, import prices in Thailand also adjusted accordingly. However, according to the SMM survey, although some adjustments in guidance prices stemmed from the significant surge in domestic prices in China, in terms of transaction volumes in the Thai market, the situation was relatively mediocre, with most transaction prices remaining low.

Globally, steel prices mostly increased last week. By region, the largest increases were in the CIS and India. Among them, Indian HRC producers raised domestic prices for August, reversing the temporary decline from the previous month. The main reasons included a decrease in HRC production due to the monsoon season, along with an expected increase in demand in August and a slight improvement in purchasing sentiment in the global steel market MoM, leading to price adjustments. However, in terms of current purchasing sentiment in the market, it remains less optimistic. In the CIS, especially the Russian market, the export transaction market for HRC was relatively good, and prices also surged. According to current survey findings, many orders have already been scheduled until October. The Southeast Asian market mostly adjusted in line with the Chinese market, fluctuating in a weak and stable manner. Looking ahead, China's macroeconomic situation will enter a vacuum period in August, but due to the current rumors of production restrictions, it is expected that China's export prices will still fluctuate at a high level. In terms of order-taking, it is expected that there is still room for price increases in the CIS. Although prices in the Indian market have been adjusted upwards, if market acceptance is difficult to improve, it is expected that there will still be room for prices to pull back.

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