Vietnam Steel raises domestic prices of long products
The state-owned steelmaker has raised prices in a series of price hikes starting 10 April, with the most recent being a VND 100,000/tonne ($6/t) hike for wire rod, and VND 150,000/t ($8/t) for rebar a week ago. The ex-mill price of its wire rod products is prevailing at around VND 10.2m/t ($574) and that for rebar around VND 10.6m/t ($596), excluding value-added tax. This is an increase of VND 300,000-600,000/t since early April. "At the moment, construction projects for private housing and buildings in Ho Chi Minh city and southern Vietnam are doing well," a VNSteel official tells Steel Business Briefing. He adds that there is also a shortage for billet in the country, especially billet for making wire rod, and imported billet prices have risen to the prevailing $410-420/t cfr.
Chinese rebar price showing signs of weakening
Increases in ex-works prices of rebars announced by steelmakers have given impetus to further rises in spot prices in eastern China. But some traders have begun loosening their offers, giving rise to fears of approaching weakness, market sources tell Steel Business Briefing. In the Hangzhou market, prices of Shagang-produced 16-25mm rebar strengthened by about RMB 30/tonne ($4/t) since 4 May to a prevailing RMB 3,400/t ($499/t). Shanghai market, rebar prices have also risen by about RMB 20-50/t since 4 May. Offer prices of 16-25mm HRB335 rebar are currently around RMB3,280-3,330/t, while those of same sized HRB400 rebar have climbed to RMB 3,370-3,400/t. But a Hangzhou source says that from late on 5 May, transactions have slowed and some traders have begun clipping prices to spur sales. The same phenomenon is seen in Beijing, with a trader there telling SBB that while HRB335 prices are being kept at about RMB 3,500/t, some traders have lowered their prices to RMB 3,480/t. All market prices include 17% VAT. "It's very hard to propel the prices up without support of strong demand," a Shanghai trader says. "But on the other hand, price collapses are unlikely to happen." The Hangzhou source predicts that markets could continue to fluctuate along the bottom until September. On 5 May, the closing price for September rebar contracts on the Shanghai Futures Exchange dropped to RMB 3,577/t, from RMB 3,636/t on 4 May.
Manila hears demand for safeguard duty on angle imports
A hearing is taking place this week at the office of the Philippines' Tariff Commission to examine a safeguard petition filed by major sections producers Cathay Metal Corp, Dragon Asia Rolling Mills and Lunar Steel Corp. The mills allege that imports of angle bars of less than 80mm have injured local producers and are seeking the imposition of a duty of a minimum P 14,000/tonne ($292/t) on imports. A 5% import duty already exists, though imports from the Asean countries enjoy a preferential duty of 3%. The commission has affirmed claims by local producers that the volume of imports surged during 2004-2007 and that local production fell in the same period. It also determined that local products were identical to the imports, despite importers arguing that a difference exists between local and imported products. The commission's determination enables the domestic industry to apply for protection through the application of safeguard measures. In the report, the commission notes that imports increased from 338 t in 2004 to 31,847 t in 2008, and at the same time domestic producers' market share fell from 99.8% to 49%. Though mostly from China, some imports were from Taiwan, a spokesperson of the Steel Angles Shapes & Sections Manufacturers Association of the Philippines tells Steel Business Briefing. Several domestic producers have either halted operations, turned to producing round and deformed bars, or are opting to produce angles intermittently, SBB understands.The Tariff Commission is due to submit its recommendations to the Department of Trade & Industry by mid-June.
Rebar prices firmer, plate unchanged, says The Steel Index
The latest reference prices released by The Steel Index this week show that European rebar prices have risen since last week. US plate prices are essentially unchanged, while southern European plate prices have consolidated at similar levels to two weeks previously. Rebar ex-mill reference prices in northern Europe are €11/tonne higher than last week at €323/tonne ($427/t), and the average lead-time is longer at 2.4 weeks. The southern European rebar price is also higher than last week at €365/tonne ($483/t), and the average delivery time is also longer at 3.2 weeks. The US plate FOB Midwest mill reference price is just $2/short ton lower than last week at $604/short ton ($666/t), and the average US plate delivery time is shorter at 3.7 weeks. In southern Europe the plate reference price is now at €450/tonne ($595/tonne), which is almost the same as two weeks ago.
The state-owned steelmaker has raised prices in a series of price hikes starting 10 April, with the most recent being a VND 100,000/tonne ($6/t) hike for wire rod, and VND 150,000/t ($8/t) for rebar a week ago. The ex-mill price of its wire rod products is prevailing at around VND 10.2m/t ($574) and that for rebar around VND 10.6m/t ($596), excluding value-added tax. This is an increase of VND 300,000-600,000/t since early April. "At the moment, construction projects for private housing and buildings in Ho Chi Minh city and southern Vietnam are doing well," a VNSteel official tells Steel Business Briefing. He adds that there is also a shortage for billet in the country, especially billet for making wire rod, and imported billet prices have risen to the prevailing $410-420/t cfr.
Chinese rebar price showing signs of weakening
Increases in ex-works prices of rebars announced by steelmakers have given impetus to further rises in spot prices in eastern China. But some traders have begun loosening their offers, giving rise to fears of approaching weakness, market sources tell Steel Business Briefing. In the Hangzhou market, prices of Shagang-produced 16-25mm rebar strengthened by about RMB 30/tonne ($4/t) since 4 May to a prevailing RMB 3,400/t ($499/t). Shanghai market, rebar prices have also risen by about RMB 20-50/t since 4 May. Offer prices of 16-25mm HRB335 rebar are currently around RMB3,280-3,330/t, while those of same sized HRB400 rebar have climbed to RMB 3,370-3,400/t. But a Hangzhou source says that from late on 5 May, transactions have slowed and some traders have begun clipping prices to spur sales. The same phenomenon is seen in Beijing, with a trader there telling SBB that while HRB335 prices are being kept at about RMB 3,500/t, some traders have lowered their prices to RMB 3,480/t. All market prices include 17% VAT. "It's very hard to propel the prices up without support of strong demand," a Shanghai trader says. "But on the other hand, price collapses are unlikely to happen." The Hangzhou source predicts that markets could continue to fluctuate along the bottom until September. On 5 May, the closing price for September rebar contracts on the Shanghai Futures Exchange dropped to RMB 3,577/t, from RMB 3,636/t on 4 May.
Manila hears demand for safeguard duty on angle imports
A hearing is taking place this week at the office of the Philippines' Tariff Commission to examine a safeguard petition filed by major sections producers Cathay Metal Corp, Dragon Asia Rolling Mills and Lunar Steel Corp. The mills allege that imports of angle bars of less than 80mm have injured local producers and are seeking the imposition of a duty of a minimum P 14,000/tonne ($292/t) on imports. A 5% import duty already exists, though imports from the Asean countries enjoy a preferential duty of 3%. The commission has affirmed claims by local producers that the volume of imports surged during 2004-2007 and that local production fell in the same period. It also determined that local products were identical to the imports, despite importers arguing that a difference exists between local and imported products. The commission's determination enables the domestic industry to apply for protection through the application of safeguard measures. In the report, the commission notes that imports increased from 338 t in 2004 to 31,847 t in 2008, and at the same time domestic producers' market share fell from 99.8% to 49%. Though mostly from China, some imports were from Taiwan, a spokesperson of the Steel Angles Shapes & Sections Manufacturers Association of the Philippines tells Steel Business Briefing. Several domestic producers have either halted operations, turned to producing round and deformed bars, or are opting to produce angles intermittently, SBB understands.The Tariff Commission is due to submit its recommendations to the Department of Trade & Industry by mid-June.
Rebar prices firmer, plate unchanged, says The Steel Index
The latest reference prices released by The Steel Index this week show that European rebar prices have risen since last week. US plate prices are essentially unchanged, while southern European plate prices have consolidated at similar levels to two weeks previously. Rebar ex-mill reference prices in northern Europe are €11/tonne higher than last week at €323/tonne ($427/t), and the average lead-time is longer at 2.4 weeks. The southern European rebar price is also higher than last week at €365/tonne ($483/t), and the average delivery time is also longer at 3.2 weeks. The US plate FOB Midwest mill reference price is just $2/short ton lower than last week at $604/short ton ($666/t), and the average US plate delivery time is shorter at 3.7 weeks. In southern Europe the plate reference price is now at €450/tonne ($595/tonne), which is almost the same as two weeks ago.
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