Daily Steel News - 30 Jun 09

Steel prices should rebound by year end –Macquarie
Macquarie Securities Group in London believes steel prices should rebound by the end of 2009 from their massive decline during the recession, as Chinese demand picks up, Chinese exports slow and users in the United States and Europe resume buying. Steel's longer-term outlook remains strong, said Jim Lennon, executive director at Macquarie, citing a slow rebuild of shuttered production capacity outside China relative to demand. Speaking this week at American Metal Market's Steel Survival Strategies conference, Lennon forecast 2009 world steel demand at 1.214 million tonnes compared with 1.352 million tonnes consumed in 2008. Excluding China, demand should fall 19.9 percent this year to 702 million tonnes. Biggest user China, should consume far more steel this year than any other region at 511 million tonnes, a 7.6 percent jump above its 475 million tonne demand last year. China's demand will be 25 to 30 million tonnes higher than actual consumption, because buyers have undergone a heavy inventory restocking after a deep destocking period last year. 'That explains why we can come up with a production number of 540 million tonnes compared with 500 million tonnes last year, despite the fact that it will no longer be exporting 50 million tonnes. But the 540 million has upside rather than downside risk,' the analyst said. Construction should dominate Chinese demand, with more than half of the total going to that sector. While export-oriented sectors should fall, China's domestic industries, like autos, shipbuilding, railways, oil and gas will all grow, he said. So far this year, motor vehicle production was up 20 percent, shipbuilding rose 40 percent, and construction activity grew by 10 percent compared with last year. By contrast, he said, he sees North American steel demand at 88 million tonnes this year, a steep 28.7 percent decline below the 123 million tonnes used in 2008. Unlike the United States, where little government stimulus money has made it to infrastructure rebuilding, the Chinese government has devoted massive funds to infrastructure. China's long steel product demand rose most sharply. Through May, it went up 23 percent year-on-year, whereas flat product demand was up only 2 to 3 percent, he said. Output also rose for long products, but fell for flat steel products. 'This suggests demand growth was very much been driven by construction, rather than flat product segments,' he said. In anticipation of future growth, Lennon said, 'China has realized this is a once-in-a-lifetime opportunity to purchase cheap commodities and raw materials to modernize its economy.' Imports of raw materials like oil, coal, and iron ore have soared. And it has been restructuring its domestic industries by closing many small, high-cost and dangerous coal and iron ore mines and replacing them with new ones. 'The risk is that when the rest of the world starts to pick up we get a renewed tightness in iron ore again,' said Lennon. With that in mind, he said, he sees iron ore and coal contract prices increasing next year, with coal going up 5 to 10 percent and iron ore contracts rising by 5 percent. And, though China has exported much less steel over the last 9 months, that has recently started to change. 'The feedback we're getting from China is that export orders are starting to pick up again. That's a function of the fact that, in North America and Europe, a lot of the people who were buying (steel) products from China destocked quite dramatically and are now coming back to buy fresh product.' 'So, we see a sign of pick up in the export oriented industries this year,' Lennon added.

Daily Steel News - 25 Jun 09

Imported billet prices rise on firm scrap in SE Asia
Recent bookings of imported billet in southeast Asia have risen to $430-435/tonne cfr, up by $5-10/t from bookings made in the second week of June. Importers in Vietnam paid around $435/t cfr for Russian-origin material, whereas buyers in the Philippines and Thailand recently booked at around $430/t cfr. Bookings were for August/September shipments, trading sources tell Steel Business Briefing. "Demand is there. But buyers are cautious because prices are moving up," a regional trader in Singapore notes. New offer prices have since risen to around $440-460/t cfr for Russian and Ukrainian material, traders say. Offers from Malaysia are heard at $450/t fob, or around $470/t cfr Thailand. "It is the rainy season. demand is weaker. Those who needed material have already bought," an importer in Vietnam says. He is not buying now but says that offer prices rose last weekend. Bullish traders believe that prices are on the uptrend. "They are ready to pay higher billet prices because scrap prices are firming," a trader in Vietnam tells SBB. Traders report hearing unconfirmed bookings of billet at $450/t cfr. This was for southeast Asian origin billet booked to Vietnam (where Asean-origin imports are levied preferential 5% import duty instead of 8% for imports from elsewhere) and a booking to Thailand. "We heard that some buyers raised their bidding price to $450/t cfr because they were not able to secure material at $440-445/t cfr," says a Thai trader. Domestic scrap shortage, due to local scrap yards withholding cargoes in a rising market, is behind recent buying interest for billet, he tells SBB.

No steel demand recovery before Q4: Fitch
Ratings agency Fitch does not expect steel demand to recover before the fourth quarter of 2009, it says in a report sent to Steel Business Briefing. Stocks of some products are depleted in certain regions and new orders are improving, but a "rebound in real demand will require a strengthening in consumer and investment spending, which may just be bottoming out," according to the report. Construction demand is likely to pick up in the near to medium term because of government infrastructure spending, but 2009 automotive requirements will be down 15% in the US and 12-15% in western Europe on already soft 2008 levels. The agency does not expect a substantial recovery in automotive demand until well into 2010. Steel mills' earnings and cash-flows will suffer until real demand does increase, and problems with credit insurance will further constrain trading, it adds. Ramped-up Chinese production may further pressure margins in regions afflicted by weak demand. "The reinstatement of export tax rebates on some steel products may result in excess production pressuring weak markets elsewhere," Fitch says. Mill capacity utilisation rates will improve to 60-70% when destocking has been completed, Fitch believes, but will remain below 75% until demand recovers. European mills were producing at 49% of capacity last month, while output was at 43% in the US. Global steel production declined by 22% in January-May 2009, compared to the same period in 2008.

Daily Steel News - 23 Jun 09

Shagang puts up rebar and wire rod prices
Eastern China's Shagang announced on 21 June that it will increase rebar and wire rod prices by RMB 130/tone ($19/t) and RMB 180/t respectively for deliveries towards the end of June. The adjustments have taken new prices for 16-25mm HRB335 rebar and 6.5mm carbon wire rod to RMB 3,750/t ($549/t) and RMB 3,880/t. The large increase from Shagang and other producers at almost the same time have given impetus to further rises in the Hangzhou market. On 22 June, prices for Shagang-sourced 16-25mm HRB335 picked up by RMB 80/t to RMB 3,800-3,820/t, with 17% VAT. A Hangzhou trader says he does not understand why mills have chosen to substantially raise their prices at this moment because he sees demand falling as construction slows in the peak of summer. "Many traders have shut up for the afternoon until they can see what's really going on in the market," he says. Shanghai traders are offering 18-25mm HRB335 at about RMB 3,680-3,720/t, up by RMB 120-150/t in a day. Meanwhile, 16-22mm HRB335 rebar prices have soared by RMB 100-110/t to RMB 3,730-3,750/t. A Shanghai trader is also circumspect about rising prices. "The current prices are relatively high, which increases the risk of placing new orders," he tells Steel Business Briefing. SBB notes that rebar futures prices on the Shanghai Futures Exchange are in line with physical market trends, with September contract prices closing at RMB 3,919/t on Monday, up by RMB 12/t from the previous trading day last Friday.

Iron ore benchmark clock ticking for China
China has one week in which to decide whether to accept similar iron ore benchmark terms to those agreed between Rio Tinto and Japanese/Korean mills before existing long-term contracts potentially become null and void. Rio chief executive for iron ore, Sam Walsh, pointed out last month that the 30 June deadline was the trigger for the two sides eventually settling 2008-09 contracts. Steel Business Briefing understands that Rio is unlikely to change its position of offering the same terms . a 33% reduction in the price of contract fines and a 44.5% drop for lump . and that the decision rests firmly with Baosteel/China Iron & Steel Association (CISA). CISA has so far resisted accepting similar pricing and continues to call for a reduction of at least 40%. D.J. Carmichael analyst James Wilson said Rio will not change its position as the company won't risk upsetting its Japanese and Korean clients. "Rio wouldn't agree to lower prices as Nippon Steel and Posco would undoubtedly say they wanted their prices backdated and then the whole thing starts again," he tells SBB. Metalytics analyst Dallas Horadam said it was unsurprising that CISA and Chinese mills would "resist and reject for a suitable period." He adds: "We have never thought it likely that the Chinese mills would get a different settlement." Citigroup analyst Alan Heap told SBB that contract terms are settled on a company-to-company rather than country-to-country basis, such as the deal agreed between ArcelorMittal and Vale last week. "It's hard to countenance that smaller Chinese producers will achieve a larger price decline," he said.

Daily Steel News - 19 Jun 09

MISIF calls for improvement in liberalised package
PETALING JAYA: The newly announced liberalised package for steel sector should be further improved to make it more conducive for local steel companies. Malaysian Iron and Steel Industry Federation (Misif) president Chow Chong Long said while Misif welcomed the move, it did not view it as “a complete” liberalised package. Misif believed a more liberalised steel industry would, over time, support the development of a more efficient and competitive sector in Malaysia, he said in a statement yesterday. “Misif will continue to work with the International Trade and Industry Ministry (Miti) to sort out various issues that would arise and hopes to improve on the new package. “Certain policies under the package will not be conducive in cases in which some steel companies may have problems sourcing for good materials and would have to pay 25% import duty,” he added. To do this, Misif would work with Miti to see how the sourcing of materials could be further improved for the competitiveness of the industry. Chow said a major development would be the enforcement of industrial standards. “While it may appear cumbersome for companies to have to go through the procedures of seeking approval in terms of industrial standards, Misif views it important that the quality and safety of products be properly assessed before they are released to the local market for consumption. “In fact, Misif is of the view that the enforcement of standards is already late in coming. But again, to help industries adjust, Miti has agreed that the implementation be introduced in stages,” he said. Megasteel Sdn Bhd executive chairman Tan Sri William Cheng said in a statement that the import duty review from 50% to 25% for all flat products and the duty to be gradually reduced further would enable the industry to be streamlined and more competitive. “This review will increase the consumption of locally produced cold-rolled coils and benefit the cold-rolled mills whose capacity now far exceeds local consumption,” he added. As the cold-rolled mills used the hot-rolled coils (HRC) from Megasteel as feedstock in their production process, this would also benefit Megasteel, a unit of the Lion Group. With the support for cold-rolled production under the policy review, local cold-rolled mills including Megasteel would have better capacity utilisation. He said it would boost the capacity utilisation of Megasteel’s HRC plant from 45% to 80% and with increased export orders, to 100% in a short period. Cheng noted that the policy review augured well for the entire industry, with both upstream and downstream players working together to compete internationally and prevent foreign steel mills from dumping their products in Malaysia.

CIS billet export prices continue to rise
The export prices of billet from Russia and Ukraine jumped by $30/tonne this week, with some traders quoting $414/t fob Black Sea as the highest offer levels in the market today. "This market has gone crazy," a prominent trader tells Steel Business Briefing. Demand appears to be strengthening due to seasonal re-stocking and perhaps some speculative buying. The impact of this is exaggerated by continuing steady demand from China and South East Asia, at a time when demand is exceeding supply everywhere, sources say. "There is no problem to sell," one major Russian producer tells SBB. Indeed, the problem is to buy. The African-Mediterranean region . including Turkey, North Africa, Jordan and Syria . is described as alive with renewed demand, whilst the Middle East has had few "very large" orders. Meanwhile, Iran is said to be uncertain in current political climate, along with Europe, which is still "lagging behind." Traders note, however, that neither Russia nor Ukraine need these markets for their billet sales. Russian offers are reported to be in the region of $400-410/t and Ukrainian $390-400/t fob Black Sea, concluded deals. OEMK and Ural Steel along with Novorossmetal are said to have been offering, with Mechel and Evraz currently out of the market, having sold their July tonnages already. Sources close to the Russian producers say they are considering selling September, with July sold and August nearly sold. Traders warn that, with Asian demand still firmly at $430/t cfr China, such an aggressive increase may backfire with a major collapse when restocking is over, next month.

CISA not optimistic about China steel market outlook
The China Iron & Steel Association (CISA) released a report on 17 June reminding members that the domestic market outlook gives little cause for optimism, and warned that a "cautious and rational" approach should be taken to recent price increases. Though domestic demand growth will be sustained thanks to government policies to encourage domestic consumption, CISA stresses that negative factors including global sluggish demand, excess domestic steel capacity and climbing imports all suggest the industry still faces a severe environment. CISA argued that the May steel price increase can be partly attributed to growth of investments and to steel demand spurred by the central government's economic stimulus policies. Steel Business Briefing notes that Shanghai rebar prices in May increased by about RMB 150/t ($22/t); Shagang's rebar ex-works price jumped by RMB 170/t in the same month. The month-on-month drops in steel market inventories since February is another reason behind the uptrend. Stocks of construction steels saw the largest decrease by end-May, with a m-o-m decline of 5.6% for rebar and 14.8% for wire rod. Inventories of cold rolled coil and plates dropped by 5.4% and 1.6% in May. But stocks of hot rolled coils show slight increases though CISA didn't give details. CISA pointed out that heating raw material markets have also played a part in the upwards steel price movement. But a distinct oversupply of some flat products, such as HRC and plates, is noted. Despite the encouragement of the stimulus package, a supply-demand balance in longs cannot be easily achieved either given the quick production restoration among small- and medium-sized mills.

Daily Steel news - 15 Jun 09

Rebar import prices rebound in SE Asia
Export prices of Turkish-origin rebar to east Asia have rebounded recently. Offers to Singapore the week ending 12 June were up to $470-500/t cfr compared to $450-460/t cfr in the previous week. Turkish prices hit lows when a booking of some 30,000 tonnes of wire rod, debar-on-coil and debar-in-straight length was made around two-three weeks ago at $440-445/t cfr Singapore. Traders are unable to explain the change in the Turkish rebar pricing. "I don't understand why they sold so low before. There was no other material being offered at that low price," a trader in Hong Kong says, suggesting the supplier was "hungry and had to do the business." The current pick-up in Turkish rebar prices could be due to better sentiment, weak US dollar, and expectations that scrap prices will be firm, he says. Improved flat steel markets have an impact on imported scrap because Chinese imported scrap is used to as feed in Chinese blast furnace production, he explains. Offers from Korea are prevailing at $460/t cfr Singapore and Hong Kong; from China, offers are believed to be prevailing at $480-490/t fob. "The rebar markets in most countries in east Asia are still quiet," a regional trader in Singapore notes. He says that there is still sufficient inventory in the regional markets and importers are not in a hurry to book material.

Korean domestic rebar prices weaken amid low demand
Korean domestic rebar prices have continued dropping as demand lags with no significant sign of recovery. Limited quantities were offered as low as KRW 670,000/tone ($534/t) for 10mm diameter bars from some domestic producers but few if any transactions were made. "The price decrease is meaningless unless demand recovers in the market," a Seoul-based trader tells Steel Business Briefing. Hyundai Steel, Korea's leading rebar producer, cut its domestic list prices for rebar by KRW 70,000/t ($56/t) from 1 June, and other makers reduced their prices in line with the large mini-mill. Hyundai's list price of rebar is now at KRW 761,000/t ($607/t) for 10mm diameter bars for direct supply to contractor, as SBB reported. While sales of most long products such as H-beams remain sluggish, those of rebars seem slightly better. Another rebar trader warns that this may cause an oversupply of rebar in the domestic market as producers maintain capacity utilization as high as 80-90% to make profits from rebar sales. "However, it might lead to an inevitable price cut by rebar producers later," he adds. Meanwhile, recent imports of Taiwanese-origin rebar are also believed to have contributed to lower domestic rebar prices, a Busan-based dealer tells SBB. "At the beginning of this month about 8,000-10,000t of rebar booked at $490/t cfr arrived from Taiwan," he says, adding that rebar producers and distributors began clipping their prices in competition in the weeks since.

Scrap prices into east Asia recover after recent softening
Scrap import prices in east Asia have moved up by $5-10/tonne and reversed the downtrend, particularly for containerised scrap, seen in the past two weeks, trading sources tell Steel Business Briefing. Containerised heavy melting scrap (HMS) 1&2 80:20 was booked at $270-275/t cfr Southeast Asia and Taiwan last week. This is similar to transaction price levels seen in late May. "The Taiwanese returned to book (containerised) scrap because the importers noticed that prices are rising again, and they need material because their inventory is low," a regional trader says. He believes that constant buying by regional importers to replenish stocks .the financial crisis is dissuading mills from stock accumulation. would keep scrap prices "fairly stable or firm." Current offers of containerised 80:20 are prevailing at $275-280/t cfr, compared with booked prices in the previous week at around $260/t cfr Korea and $265-270/t cfr Southeast Asia. Recent Chinese import bookings also reflect higher prices. Shagang booked several cargoes of bulk shredded from USA at $300/t cfr last week, up $10/t from the previous week. Another Chinese mill booked bulk bonus grade scrap from USA at $313/t cfr. "There are not many offers in the market. Suppliers are saying that they can get higher prices in China and Turkey," a trader in Vietnam tells SBB. Japanese scrap export prices are also rising. Korea's Dongkuk Steel booked Japanese H2 grade scrap at ¥24,700/t fob ($252/t) last week, up by ¥1,200/t ($12) from the previous week, Korean trading sources tell SBB.

Daily Steel News - 12 Jun 09

CIS billet prices firm up a little more on stronger demand
Prices of export billet from Russia and Ukraine have firmed up a little more this week, with Ukrainian billet testing $370-380/tonne fob Black Sea levels, and some Russian billet being offer at up to $390/t fob Black Sea, market sources tell Steel Business Briefing. Demand is said to be strengthening in the Mediterranean, along with strong Iranian interest, and the Persian Gulf is following suit. Although not translated into a major buying wave as yet, "re-rollers will have to start buying soon, to replenish their stocks," a local source says. Rebar price strengthening has been noted in the area, although the majority of sources still advise that this market is stagnant. Meanwhile, demand is said to be continuously strong in Asia, with Vietnam "ready to pay $430/t cfr," according to traders in Europe, along with Thailand. There is expected to be a shortage of billet available in the Far East of Russia, as Amurmetal . the scrap-based mill supplying billet and slab to the region has stopped production for the moment. July tonnages are now sold, but the buyers are said to be anxious to commit to buying August produced billet. There is a lot of demand at $360-370/t fob levels, SBB is told, but producers are looking for higher bids. "In a few weeks' time, when buyers are ready to buy, there could be a shortage of material for all," one source claims. However, another warns that, should producers give in to temptation to ramp up production (which some in Russia are already doing), they could crash the market out of its current equilibrium.

Steel prices soar on Shanghai Futures Exchange
Steel prices on the Shanghai Futures Exchange reached their highest point since trading began in March, boosted by Baosteel lifting July ex-works prices and the iron ore settlement between Vale and Nippon Steel/Posco. September rebar contracts closed at RMB 3,878/tone ($567/t) on 11 June, compared with RMB 3,808/t on the previous day. Closing price for September wire rod contracts climbed to RMB 3,768/t, from RMB 3,709/t the day before. Transactions on the same day also created new records at RMB 25.5bn for both rebar and wire rod contracts. Positive economic data released by the National Bureau of Statistics (NBS) also helped boost confidence in the futures market. According to NBS, China's urban fixed assets investment surged 32.97% year-on-year in the first five months to RMB 5.35 trillion, while real estate sector investment rose 6.8% to RMB 1.02 trillion. But spot markets in Shanghai have not reacted in accordance with the soaring futures market. Due to slowing transactions during the week, prices for 16-25mm HRB 335 and HRB 400 softened by RMB 50/t to RMB 3,460-3,470/t and RMB 3,520-3,550/t. The market has been expecting Shagang to reveal its new rebar and wire rod prices since 11 June, but the company decided to delay the announcement until 12 June. Market rumours suggest the mill will either retain its exisisting prices or increase them by around RMB 50/t.

Daily Steel News - 9 Jun 09

Malaysian mills raise bar and wire rod prices
Malaysian mills have increased domestic prices of rebar and wire rod by RM 100/tonne ($29/t). This follows a similar magnitude price rise last month. List prices effective 1 June are RM 2,100-2,200/t for rebar. Wire rod is priced at around RM 2,200/t. "Prices are rising because of tight supply of bar and wire rod," a Malaysian trader tells Steel Business Briefing. He attributes this to a shortage of scrap and possible over-commitment by domestic mills in their export sales of billet. "Prices have risen by RM 200-250/t since lows seen in early May," he adds. "Prices are likely to rise further," he notes. "The price for >16mm bar is currently around RM 2,000/t net and it may move another RM 50/t soon," another trader tells SBB. The Malaysian market has recently picked up, in part due to the replenishment of stocks after destocking in the market. "Buyers wanted to lock in their purchases when they saw prices rise," a mill manager says. The bar market is seeing a slight recovery in domestic and export sales, according to the Malaysian Iron & Steel Industry Federation. Production levels and sales volumes of bar plunged by an average 60% due to the financial crisis. Production during third quarter 2008 was 535,000 t but this fell to 200,000 t during fourth quarter. The average bar price fell to RM 1,900/t in December 2008 and remained at this level earlier this year, compared to highs of some RM 3,500/t recorded during third quarter 2008.

Malaysian output of long products
Source: MISIF (million tonnes)
2005 2006 2007 2008
Billet 3.796 3.834 4.695 4.623
Bar 1.648 1.942 1.944 1.903
Wire rod 1.175 1.158 1.331 1.110
Section 0.295 0.254 0.22 0.214

China stunned by BHPB-Rio iron ore merger plan
Rio Tinto and BHP Billiton have stunned their customers in China by announcing plans to bring their iron ore businesses in Western Australia into one massive 50:50 joint venture company. A combined Rio-BHPB will rival Vale as the world's largest iron ore producer. Rio said that the JV will yield more than US$10bn in production and development savings. The two companies will merge their Pilbara mines, railways and port infrastructure, and work together to expand iron ore production. However, sales and marketing of iron ore will remain largely separate. BHPB will pay Rio US$5.8bn to even up the JV equity. Most analysts believe the Australian government and shareholders will approve the deal. However, the merger must also be approved by the European Union which blocked BHPB's previous attempt to acquire Rio. Chinese steel mills, which were fervently opposed to a Rio-BHPB corporate merger, have been shocked by the news and confronted with a sense of déjà vu. "It's like our nightmare has returned," a state-owned mill official in northern China tells Steel Business Briefing. "This is very bad news for China and means there will be only two large iron ore suppliers rather than three, which was already too few," he says. Another mill official in Shandong province believes that it is effectively a "merger through the back door." "We're now faced with a monopoly with frightening pricing power," the official says. Chinese mills are resisting miners' efforts to enforce a 33% cut in contract prices. In 2008 China imported 183m tonnes of iron ore from Australia, mostly from BHPB and Rio, versus 100m t from Brazil. Annualised, Vale's crisis-hit Q1 2009 iron ore production figure would be around 188m t, SBB calculates. Rio plans to produce 200m t this year, while BHPB is targeting 130m t for 2009 fiscal year (1 July-30 June).

Daily Steel News - 3 Jun 09

China's Shagang lifts rebar and wire rod prices again
Shagang is to raise its ex-works prices for rebar and wire rod for early June delivery, eastern China's leading producer announced on 1 June. Prices for 16-25mm HRB335 rebar have been raised by RMB 30/tonne ($4/t) to RMB 3,550/t ($520/t), and those for 6.5mm carbon wire rod by RMB 80/t to RMB 3,630/t. Shagang lifted rebar prices by RMB 170/t and wire rod prices by RMB 210/t in May, Steel Business Briefing notes. Following the adjustment, prices for 16-25mm HRB335 rebar at Hangzhou in Zhejiang province inched up by RMB 20-30/t on 1 June to RMB 3,560-3,570/t. But a local trader thinks prices will quickly peak. Shanghai prices also increased by about RMB 50/t on the same day. As a result, prices for 16-25mm HRB335 rebar are quoted at about RMB 3,470-3,490/t, while same sized HRB400 prices have risen to RMB 3,550-3,590/t. Beijing prices have headed in a similar direction, increasing by RMB 30-50/t and taking 16-25mm HRB335 prices to about 3,650-3,680/t. All prices quoted include 17% VAT. In line with domestic prices, rebar producers have lifted export offers to a prevailing $500-520/t fob, compared with around $480-495/t fob in May. But the prices hikes have made it more difficult to conclude transactions, SBB understands.

Daily Steel News - 1 Jun 09

East Asian scrap import market sees 'price correction'
Scrap import offer prices to east Asia have dipped in the past week because of weaker sentiment in international markets. Containerised 80:20 heavy melting scrap (HMS) 1&2 was recently booked at $270-275/tonne cfr Taiwan, despite suppliers aiming to sell at $10/t higher in the last two weeks, traders tell Steel Business Briefing. Offer prices to Singapore are also at $270-275/t cfr, down from $280-285/t cfr a week ago. The current import market in Korea is "very quiet," a Seoul-based trader tells SBB. Hyundai Steel booked late last week (ending 29 May) Japanese H2 grade scrap at ¥23,500/t fob ($245/t), down from the ¥23,800/t fob purchase price it made earlier in the same week. The tonnage booked is an estimated combined 50,000 tonnes . 40,000 t at the lower price and 10,000 t earlier. "There is a slight price correction, but I don't know if this downtrend will continue," the trader says. Hyundai booked H2 at ¥24,000/t the previous week. Japanese H2 was recently booked at $270-275/t cfr by the Taiwanese and Chinese. The Chinese also booked Japanese HS grade at $295-300/t cfr. Offers of bulk 80:20 HMS are being indicated at around $290/t cfr southeast Asia. An importer tells SBB that the approaching Muslim fasting month in August will adversely impact demand. The Vietnamese EAF operators are holding low scrap inventories, a Vietnamese trader says. "Buyers are expecting prices will drop. The scrap market is very quiet," he tells SBB. Despite softening prices, he has seen few offers in the market.