Affected by poor market demand, plans of steel mills and traders to increase steel export quotation failed to materialize. Export prices of steel products from the Commonwealth of Independent States, South Korea, China, and
Other regions have dropped again at the end of September after tentative increases in August.
Weak economic growth and persistently low demand for steel products Due to the depreciation of local currency against the US dollar, the import costs of steel materials such as South Korea, Turkey, and Taiwan Province of China have increased. The export quotation for steel products should have been adjusted upwards. However, due to the global demand slump, steel mills raised their export quotation. Not only is the plan difficult to achieve, it is on the contrary falling.
Take South Korea as an example. Since September, the Korean won has continued to depreciate against the U.S. dollar. On October 10, the Korean won was 1167.45:1, a depreciation of nearly 10% from the beginning of September. As the won continued to weaken, the price negotiations for hot rolled coils delivered in the third quarter of Japan and South Korea have yet to make progress. The exchange rate of the Korean won is not stable against the US dollar, and it is difficult for Japanese steel mills to bid. The current negotiations between the two sides basically stagnated.
A similar situation also appeared in Taiwan Province of China. Since late September, the new Taiwan dollar has depreciated sharply against the US dollar and China Steel Corporation of China (CNMC) plans to substantially increase the domestic sales price in December. However, due to weak market demand, Sinosteel’s plan to raise the ex-factory price encountered resistance. The market expects China Steel to increase The ex-factory price plan is likely to abortion.
Recent information shows that although the low season of demand in July and August has passed, the demand for the global steel market has not significantly improved.
The American Iron and Steel Association (AISI) announced on October 5 that the total number of U.S. steel import permit applications in September was 2.221 million short tons, which was 11% lower than the 2.481 million short tons applied for in August and 2.44 million short tons compared to August. The preliminary statistics fell by 9%. This is because since June of this year, the number of U.S. steel import permit applications has dropped in a consecutive 4 months.
In addition to the United States, the demand in emerging markets is not as expected. The steel associations in Brazil, South Korea, Thailand, Latin America and other countries and regions have successively lowered their demand for steel products this year.
The export price of steel products fell again in August. In the major countries and regions such as the CIS, Russia, and South Korea, steel export prices were slightly raised. However, the continued sluggish market demand made the global steel export quotation fall again in September.
Russia’s third-largest steel company MMK and Ukraine’s llich will cut its HRC export quota for Taiwan Province of China to US$670-680/ton (C&F), down from US$25-35/quote for September’s offer. Ton. However, most Taiwanese steel mills still believe this price is higher than expected, because the price is close to the current market trading price of NT 20,800-21,000/t. Taiwanese steel mills are more likely to offer 20,000 to NT$20,500/t.
The latest export prices of Korean hot rolled coils fell to US$700/tonne (FOB, October-November shipments, down from US$30/tonne in September. The export prices of Korean hot rolled coils are still higher than those of other countries and regions, Southeast Asia, etc. Steel import regions require that they continue to lower prices.
The largest rebar producers in Turkey announced that the length of long products produced in November was 680-685 US dollars / ton (FOB, Marmara). Steel mills in Izmir, another Mediterranean port city, sell for rebar at $710/tonne (CFR, South America, settled at theoretical weight) or $675/tonne (FOB, Izmir), down from the end of September. 15 US dollars / ton.
Due to the sharp drop in domestic steel market prices, China's steel export quotation has also recently declined slightly. At present, Chinese steel mills offer prices for hot rolled coils in Vietnam in the range of US$710-720/tonne (CFR). Dealers’ prices are slightly lower at US$695-705/tonne (CFR), which is a drop of 10-20 compared to mid-September. USD/ton.
U-bolts are versatile fasteners used to secure pipes, conduit, cables, and machinery, or as an Anchor in foundations and
The most common material used in fasteners, this material is predominantly iron mixed with carbon. It offers the highest strength compared to other metals and elements, but is the least corrosion resistant. Also known as Carbon Steel.