International trends in the steel industry at the end of April
In terms of exports, at the beginning of this week, Chinese steel mills increased their export quotations for hot-coiled CFR Vietnam by 50-60 US dollars/ton, reaching 910-920 US dollars/ton, from 860 US dollars/ton a week ago, and it was still 800 last month. About US$/ton. Currently in the global low-price zone. The export tax rebate policy that may be introduced in the near future, the seller bears the tax rate risk and the recent rising ocean freight is the main driving force for the rise of China's hot coil export prices.
In terms of imports, according to the latest customs data, China imported 55,400 tons of recycled steel raw materials in the first quarter, including 4 million tons in January, 6,000 tons in February, and 45,600 tons in March, a month-on-month increase of nearly 660%. At present, the main sources of recycled steel raw materials in mainland China are concentrated in Asia, mainly Japan. The mainland imported 30,600 tons of recycled steel raw materials in the first quarter, accounting for 55%; followed by Malaysia, which imported 11,400 tons, accounting for about 20.6%; and the third was South Korea, which imported nearly 10,000 tons, accounting for 16.3 %about.
India: This week, the latest export price index of Indian Hot Rolling (SAE 1006) has risen to US$936/ton, which is an increase of US$9/ton from US$927/ton a week ago. Driven by both domestic and foreign steel prices, Indian steel companies have continued to raise their export quotations in the past week. In addition, the rise in my country's steel futures prices and the strong export quotations of other major hot-rolled suppliers have also provided strong emotional support to the Indian export market.
Southeast Asia: According to data from the Vietnam Iron and Steel Association, Vietnam's steel production in the first quarter increased by 33.8% year-on-year to 7.66 million tons, mainly due to the expansion of production capacity, sales and exports. Sales and exports in the first quarter reached 6.78 million tons and 1.63 million tons, respectively. Compared with the first quarter of 2020, sales increased by 34.7% and exports increased by 59.5%.
The Vietnam Iron and Steel Association attributed the huge sales in the first quarter to the improvement of the global economy, which not only supported the global but also the greater domestic demand for steel in Vietnam. The Vietnam Iron and Steel Association also stated that the Vietnamese steel industry will grow by 5%-6% in 2021.
European Union: ArcelorMittal Europe is expected to start a new round of coil price increases this week. It intends to increase the ex-factory quotations of Northern Europe and the Iberian Peninsula by 30 euros/ton, and hot coils to 1,000 euros/ton ( (USD 1,205/ton), cold coil and hot-dip galvanizing are expected to reach 1,150 Euros/ton. The shortage of steel supply, the recovery of steel demand and the lack of competition from imported products are the main driving forces for this price increase.
South Korea: According to statistics from the Korea Iron and Steel Association (KOSA), South Korea exported a total of 52,000 tons of cold-rolled stainless steel in March 2021, an increase of 13.2% from February. Among them, the export volume of cold-rolled wide band stainless steel was the largest, with 41,300 tons, an increase of 15% from February.
In terms of export destinations, South Korea exported the most cold-rolled stainless steel from Japan in March, with 8,900 tons; followed by Italy, with 4,000 tons; and third, with Vietnam, with 3,200 tons.
Japan: According to the weekly price survey conducted by the Japan Non-Ferrous Metal Raw Materials Association, the average domestic transaction price of HMS2, a major steel mill in Japan this week, was 4,073 yen/ton, an increase of 2,150 yen/ton from a week ago. This is the first time the average Japanese scrap price has exceeded the 40,000 yen/ton mark since 2009.
At present, the average market price in the Kanto region is 39,000 yen/ton, an increase of 2,000 yen/ton on a week-on-week basis; the price in the central region is 40,220 yen per ton, an increase of 4,000 yen/ton on a week-on-week basis; the price in Kansai is 41,000 yen per ton Yen/ton, up 1,750 yen/ton from a week ago. Scrap prices across the country have risen sharply. In addition, Tokyo Steel increased its scrap purchase prices by 500-1,000 yen/ton this week.
Source: Seamless Steel Pipe Supplier