This week, the price movements in the global steel market, which is a constantly changing environment, have provided an intricate picture of variable trends with cautious market sentiments. As we explore the details involved in domestic and international steel trading, it can be seen that trade between regions has been influenced by supply and demand forces that are driven by economic indicators and regional market dynamics. This article highlights the most recent developments in steel prices starting from China’s domestic market to turkey via other Asian countries. These findings provide a status check on industry and hints about what future activities may indicate as far as global steel prices are concerned.
China Domestic Market
Compared with last week, this week’s average national rebar price fell 72 yuan per tonne for construction steel within China’s domestic market. In this Beijing-Jingtohaobei area, spot prices had a great decline from between 30 to 170 yuan/tonne but performance was just moderate. With such caution among merchants, there is high willingness to sell their products. Price of construction steels in Shanghai fell after digesting macro factors down while weekly rebar price dropped by 50yuan per tonne. However due to future down trend and rainy weather; building materials went through a weak fluctuation at Guangzhou.
Influencing Factors Analysis
Rainy Season and College Entrance Examination: During the rainy season and college entrance examination transportation restrictions impact terminal demand performance which leads to fluctuating declines in the spot prices.
Post-Dragon Boat Festival Demand: Restocking demand exists for some time after the end of Dragon boat festival which increases its demand.
Future Forecast
Short-term market sentiment is still cautious; it is expected that national construction steel market will have a narrow adjustment next week.
Asian Market
The overall price of long materials in Asia is weak, leading to an average performance in transactions characterized by low demand levels. The export quotations for wire rod and rebar from China have generally weakened with 10 to 15 US dollars/tonne. Vietnamese steel prices are stable but the real estate sector is slowing down, demand is feeble and raw material prices have dropped marginally resulting in a highly bearish sentiment.
Turkish Market
At the beginning of this week, Turkish rebar export quotation was 570-580 USD per ton FOB and then rose slightly to 580-600 USD per ton FOB while the deal able price was approximately 570-575 USD per ton FOB. At Steel mill level, there is a willingness to give some discount due to very low sales volume. Due to higher expectations of scrap steel prices and upcoming Eid al-Adha holidays (June 17-20), prices may keep flat or drop slightly in short term period.
Scrap Steel Market
Both Turkish and US scrap steel markets are under some pressures. In the short term, it is hard for Turkey’s scrap steel price to fall while supply in the USA is poor and thus there is little space for higher prices.
UAE Market
Lately in UAE, there have been several giant infrastructure projects under construction simultaneously, which made a demand for domestic rebar very high. Nonetheless, market participants expect somewhat subdued market activity at the end of June as traditional Eid al-Adha holiday (June 16-19) approaches. Last week, UAE Steel Company’s last week offer on rebars was at $645 per ton EXW which came down a bit whereas mill discounted by $25 per tonne below selling price and resultant transactable one was at $620 per ton EXW . At the same time rolling mill quoted at USD 585-595/ton EXW.
Import Aspect
Rebar from Oman has been traded to the UAE at CPT $590/ton similar to previous week.
Summary and Outlook
To sum up, this has been this week international steel market:
China Domestic Market: Price downward fluctuate in different directions with cautious shortsightedness of the market where prices may undergo a narrow adjustment.
Asian Market: The demand is weak while prices are generally weaker showing bearish feel strong among traders.
Turkish Market: There were slight increases in export quotes but due to forthcoming holidays prices might remain stable or slightly soften in short term.
Scrap Steel Market: Turkey and US markets have pressures though no significant price changes can be expected within a short period of time.
UAE Market: Demand strong however June-end activities may be limited by upcoming festival .
Looking ahead , various factors such as poor demand , holiday impacts , fluctuations in raw material costs will still affect global steel markets. These should be watched closely by players so that they can make appropriate market forecasts and strategic adjustments.
