[Analysis by SMM] Global Steel Market Weekly Review, Issue 2

[Analysis by SMM] Global Steel Market Weekly Review, Issue 2

Last week, China's steel export prices fell by $3-10/mt. In the Thai market, there was a divergence in mainstream product categories; galvanizing prices first increased then decreased, with current CFR Thailand transaction prices at $630-635/mt. Wire rod prices, however, saw a higher increase due to better shipments of mainstream resources this month, leading to a slightly higher increase, with current CFR Thailand transaction prices at $530-535/mt. Local processing enterprises reported moderate transactions last week, mainly as downstream purchase willingness improved after prices followed a downward trend. So far this week, shipments have been flat, and a wait-and-see sentiment among end-users has resurfaced.

In the global major markets, steel prices were stable with a weakening trend last week, dropping by $3-5/mt. By market, trading activity in Turkey has not yet recovered, and as domestic steel prices dropped slightly, export prices also weakened, with a moderate decline, but overall transactions remained weak. Last week, the Indian government announced anti-dumping duties on hot-rolled flat products from Vietnam, and the refusal to grant new BIS specification exemptions to producers from China, Indonesia, and Vietnam boosted market sentiment, supporting price increases. However, due to overly high pricing by Indian mills in early August, which did not meet expectations, they are now offering rebates, leading to an overall price decline MoM. Looking ahead, influenced by news of tightening raw material supply, HRC prices in the Chinese market are expected to rebound slightly this week. Southeast Asia continues to be in the doldrums, while the Indian steel market is seeing a decrease in supply, suggesting that prices will remain firm.

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