[SMM Analysis] Third Installment of the Weekly Review of the Global Steel Market

[SMM Analysis] Third Installment of the Weekly Review of the Global Steel Market

Last week, China's steel export prices fluctuated rangebound by $1-5/mt. By product type, HRC prices fell by $1-5/mt, medium-thickness plates dropped by $3/mt, while cold-rolled products and silicon steel demonstrated strong resilience, showing slight increases. Last week, prices of mainstream resource varieties in the Thai market remained stable, with galvanizing CFR Thailand transaction prices at $530~535/mt and wire rod CFR transaction prices at $520-525/mt. According to local processing enterprises, transactions were in the doldrums last week, with downstream purchases cooling off and shipments remaining average.

In major global markets, steel prices showed mixed changes last week, with prices in most Asian regions decreasing by $2-5/mt. By market, most buyers in Southeast Asia had already met their restocking needs in the earlier period, so they mainly adopted a wait-and-see approach last week, postponing plans for new orders. Affected by the weakened market procurement enthusiasm, prices decreased slightly within a narrow range. Meanwhile, the weakening prices of some imported resources also compelled local producers to reduce prices to enhance their competitive edge. This week, the CIS market also lowered its export quotations due to weakened end-use demand. However, reviewing its price trend throughout August, the average monthly price in August showed a significant increase MoM from July, primarily because CIS export prices held a competitive advantage over resources from other countries, with active market procurement and some room for price hikes. Looking ahead, with a short-term macro vacuum, it is expected that HRC prices in the Chinese market will rise first and then decline this week. Turkish market demand appears slightly sluggish, with anticipated price decreases. Southeast Asian prices are expected to fluctuate weakly.

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