2022.10.20

Steel Industry is Turning Back to Down Trend, Oct 20th, 2022

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Despite the Chinese currency's devaluation and weak market mood, China's HRC export offers remained constant. Despite minor reductions offered by some providers, the European HRC market remained calm on October 17th. HRC prices in the United States remained constant due to weak market buying activity.

Let us support and share with you in this blog your business decision during this down-trend market around the world in the mid-month of October 2022.

China 

China's HRC export offers remained stable at $590/t FOB China amid the depreciation of the Chinese currency and poor market sentiments. However, China's domestic HRC prices fell by RMB 30/t ($4/t) and CRC prices by RMB 20/t ($3/t) on Oct 17th due to logistic restrictions for Covid-19 prevention and lower HRC futures for Jan'23 delivery. Currently, prices for HRC are offered at RMB 3,920/t ($545/t) Ex-works, inclusive of 13% VAT.

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Japan 

A leading EAF steel producer in Japan announced on Oct 17th to roll over its steel prices for November sales. The effective prices for November will be JPY 115,000/t ($773/t) for HRC and JPY 97,000/t ($652/t) for Rebar. However, the company is warning that it needs to lift prices soon to transfer increases in production costs.

Europe

The European HRC market remained quiet on Oct 17th regardless of some discounts being granted by some suppliers. Buyers have enough stock and keep staying on the market sidelines. Transaction of HRC was reported deal at €670/t Ex-work, down by €40/t from one week earlier.

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America 

With slow buying activity in the market, HRC prices in the United States remained stable at $823/MT ($748 per short ton) FOB mill the US on Oct 14th, just slightly up by 0.73% from a week earlier.

Viet Nam

Formosa Ha Tinh (FHS) decided to reduce its HRC prices for December shipments by $17/t lower than the previous month's prices. After the adjustment, the offer price for HRC from FHS stands at $593/t CIF Ho Chi Minh City. The unfavorable market conditions due to the monsoon's seasonal impact together with the depreciation of VND currency and the downtrend of global HRC prices are the driver for a price reduction.

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Steel Industry is Turning Back to Down Trend, Oct 20th, 2022