7.6 SMM Global Steel Daily Report

[Flat products]HRC up 1 USD, deals at 489-497 USD/tonne

HRC prices rose 1 USD/tonne today and other flat product export prices also rose 1 USD/tonne day on day, with HRC deals at 489-497 USD/tonne. Inquiries were fair, but actual deals were mediocre, as overseas buyers' target prices sat slightly below Chinese sellers' offers.

[Billet]Export billet FOB up 1 USD to 459-462 USD/tonne

Export billet prices edged up 1 USD/tonne today, with FOB offers at 459-462 USD/tonne. According to market feedback, overseas competition remains fierce while domestic mills' offers are near cost, leaving little willingness to concede further and making deals difficult.

[Rebar]Rebar export offers firm, Singapore CFR at 520-525 USD

According to traders, China's rebar export offers to Singapore recently clustered at 520-525 USD/tonne CFR. Some mills cut output, leaving export resources relatively limited and offers firm, but overseas buyers showed weak willingness to accept high prices, so overall deals were mediocre.

[Vietnam]Domestic Mill Price Cuts Squeeze Imports as ASEAN HRC Weakens

On July 6, ASEAN HRC import offers edged down to 535 USD/tonne CFR amid thin trading. Over the prior week Vietnam's two leading mills each slashed HRC ex-works prices by 33-34 USD/tonne: Hoa Phat's target price to key clients fell to 535-537 USD/tonne CIF, while Formosa Ha Tinh's September-shipment offer dropped to 546-556 USD/tonne. Formosa's official July prices, released last Friday, were cut roughly 40 USD/tonne month-on-month, quoted at 538 USD/tonne CIF for volumes above 20000 tonnes and up to 548 USD/tonne CIF for small lots, with August-September shipment. With domestic material now more competitive, Vietnamese buyers clearly favored local supply and showed little appetite for imports, forcing import offers lower: Indian HRC deals slipped to 535-540 USD/tonne CFR and Indonesian HRC to 525-535 USD/tonne CFR, both with scarce transactions. The Asian slab market softened in tandem, with local Vietnamese slab down to 490 USD/tonne FOB and Indonesian August-shipment export slab at 490-495 USD/tonne FOB. Separately, the Ha Tinh provincial government formally terminated the Thach Khe iron ore project, whose reserves total about 544 million tonnes, leaving Vietnam unable to lift domestic iron ore self-sufficiency via large-scale mine development in the near term.

[Turkey]Weak Demand and Overbooked EU Quota Keep Turkish HRC Sliding

On July 6, Turkish HRC prices extended their decline, weighed by limited domestic demand and a lack of alternative export outlets, with September-delivery offers down to 605-630 USD/tonne EXW. The EU quota reset brought no relief: the new quarterly HRC quota was instantly overbooked by large volumes that had arrived earlier, with third-quarter over-declaration reaching 205% and about 330000 tonnes queuing for customs clearance against a quota of roughly 160000 tonnes, further capping prices as export channels clogged. On longs, as of July 3, Turkish rebar export prices fell to 575 USD/tonne FOB on persistently weak domestic and export demand, declining mill inventories and an absence of firm orders, while HRC on an FOB basis eased to 585 USD/tonne. The domestic market remained depressed, with traders reluctant to stockpile amid tight cash flow and high borrowing costs, and no meaningful demand recovery is expected this summer.

[India]Inventory Build Drags Longs as Rebar Slips While Safeguard Duty Props HRC

On July 6, Indian blast-furnace (BF) route rebar prices fell about 17 USD/tonne week-on-week to around 512 USD/tonne, dragged down by a seasonal construction slowdown, rainfall, project delays and dealer inventory accumulation. Demand stayed limited to needs-based restocking, mill inventories ran at about 10-15 days, and the market expects major mills to cut long-product offers further. By contrast, HRC held firm at around 609 USD/tonne, supported by the import safeguard duty and falling import volumes, clearly outperforming longs and highlighting the divergence between flat and construction steel.