Hyundai to lift rebar sales prices from May
Hyundai Steel will raise its domestic rebar sales prices by KRW 20-30,000/tone ($15-22/t) from May, blaming this on the need to offset higher scrap prices and fixed costs. The rise will take its sales price for 10mm diameter bars for direct supply to contractors to KRW 760-770,000/t ($561-569/t). The mini-mill's list price for its bars remains at KRW 831,000/t ($617/t). Korean scrap prices have been rising recently, with EAF makers near Busan on the southeast coast now paying KRW 400-420,000/t ($295-310/t) for Shindachi grade, a rise of KRW 40-50,000/t from the beginning of this month. Other Korean rebar makers seem likely to raise their prices too, with one suggesting a rise of KRW 20,000/t from next month is under consideration, though a decision is still pending. Consumers are likely to buy more rebar once they realize prices are about to increase. "However, we are concerned whether the sales may suddenly decrease from next month once consumers have secured sufficient inventories at their yards," he tells Steel Business Briefing. But contractors seem cool to the possibility of a price hike from next month. "This is the last chance for rebar makers to lift prices in the first half of this year so they are eager to push up prices now. However, the weak rebar demand will not help," a source from Korea Construction Procurement Part Association said.
Hyundai Steel will raise its domestic rebar sales prices by KRW 20-30,000/tone ($15-22/t) from May, blaming this on the need to offset higher scrap prices and fixed costs. The rise will take its sales price for 10mm diameter bars for direct supply to contractors to KRW 760-770,000/t ($561-569/t). The mini-mill's list price for its bars remains at KRW 831,000/t ($617/t). Korean scrap prices have been rising recently, with EAF makers near Busan on the southeast coast now paying KRW 400-420,000/t ($295-310/t) for Shindachi grade, a rise of KRW 40-50,000/t from the beginning of this month. Other Korean rebar makers seem likely to raise their prices too, with one suggesting a rise of KRW 20,000/t from next month is under consideration, though a decision is still pending. Consumers are likely to buy more rebar once they realize prices are about to increase. "However, we are concerned whether the sales may suddenly decrease from next month once consumers have secured sufficient inventories at their yards," he tells Steel Business Briefing. But contractors seem cool to the possibility of a price hike from next month. "This is the last chance for rebar makers to lift prices in the first half of this year so they are eager to push up prices now. However, the weak rebar demand will not help," a source from Korea Construction Procurement Part Association said.
Japan's rebar export prices to Korea up
Japan steel rebar price has slightly increased and being quoted at ￥48,000~50,000/ton to Korean market. The contract price of steel rebar in mid-April is around ￥45,000/ton. Korean rebar importers said that the Japanese steel producers adjust the export price to the level of domestic demand since they are worrying about trade disputes and the possibility of price increase may continue. It is reported that Korea importers are holding low stock and some importers is increasing selling prices in order to increase import quantity.
Japan steel rebar price has slightly increased and being quoted at ￥48,000~50,000/ton to Korean market. The contract price of steel rebar in mid-April is around ￥45,000/ton. Korean rebar importers said that the Japanese steel producers adjust the export price to the level of domestic demand since they are worrying about trade disputes and the possibility of price increase may continue. It is reported that Korea importers are holding low stock and some importers is increasing selling prices in order to increase import quantity.
US hollow section price drops
Since last week, U.S. distributors expected the hollow section steel price to be adjusted down by at least US$44/ton, but so far, there is no officially announced steel price adjustment. Nevertheless, some customers had received the offer after the cut. It is estimated that in the U.S. domestic market the prices of ASTM A500 Grade A and B, 6 "and below standard will be down at least by US$44/ton to US$717-739/ton. For some large orders and special specifications products, prices may be even lower. It’s also forecasted that the price in the next month will be slightly down further after this price cut, at present, the U.S. plate market has yet to show signs of a warmer.
Ann Joo Resources receives big overseas orders
Ann Joo Resources Bhd, the biggest steelmaker by stock market value got an overseas big order of 40,000 tons to 50,000 tons in the past two weeks. It seems that the overseas sales for the industry are recovering. Its trading increased by 3.3 percent in Kuala Lumpur after the report. The company has resumed full production at its plant in April after two months' shutdown. Economic data from Japan to the US suggest world trade may have bottomed as countries including China roll out stimulus packages.
Malaysian steel market seems rebound
With the rebound of steel demand and price in the Malaysian market, the mills which produce the long products will be in the black again soon. During last month, the steel demand rose by 15 percent while the stock continued to fall further. Masteel said that the price of the long product has increased by 10-15 percent since the bottom level in last December and this January. It is said that the main reason of the recovery in the local market attributed to the cancellation of the Chinese steel products. The left supply gap will be supplemented by Turkish, Taiwan and local mills.
With the rebound of steel demand and price in the Malaysian market, the mills which produce the long products will be in the black again soon. During last month, the steel demand rose by 15 percent while the stock continued to fall further. Masteel said that the price of the long product has increased by 10-15 percent since the bottom level in last December and this January. It is said that the main reason of the recovery in the local market attributed to the cancellation of the Chinese steel products. The left supply gap will be supplemented by Turkish, Taiwan and local mills.
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