Global steel prices, including export prices of Indian mills, have seen a 13-15% downward correction, month-on-month on seasonal demand weaknesses, recessionary pressures across the world, and an economic slowdown eyeing at China. For Indian hot rolled coil the benchmark offering prices are at $ 639 per tonne, fob East Coast, down by $93. The HRC prices were around $732 a month ago, say trade sources.
In China, a key steel producer, and consumer market, long steel demand used in construction is weak, say trade sources. Rebar prices continue to decline there. “In Northern Europe, buyers are expected to resume restocking for September from the end of July. So there is something that Indian exporters can look up to. But, there is an export duty overhang which needs to be taken care of too,” said a steel mill official.
Major steel markets like Europe are reducing off-take as geopolitical tensions lead to gas prices used across homes and factories rising by 700 percent. This has led to unusual inflationary pressures leading to slowing demand for steel. In fact, there are concerns over energy availability and energy prices in Europe later this year as the EU nations bring in place more sanctions against Russia.
SteelMint’s data shows that China’s HRC FoB prices have lost 20 percent month-on-month to $618 a tonne and CRCs by 15 percent to $710. The Black Sea HRC FoB prices lost dropped 15 percent to $600/tonne, while in Japan, it dropped by 20 percent to $650 fob. In Vietnam, there was a 15 percent declined in prices to $640/tonne; and in Turkey, the fall (in rebar prices) was 5 percent to $710/tonne.