Going after nearly three months, two months ago half of the global steel market stagflation consolidation trend. Month, CRU index 167.6 points in May fell 0.4% MoM (decline in the expansion). Where: Asian index 167.4 points, on a monthly decline of 0.1% (a decrease of convergence); European index 158.7 points, on a monthly decrease of 1% (from up to down); North America Index 179% MoM decline of 0.5% (of up to turn down) ; flat steel index 160.6 points, down 0.2% MoM (from the flat to down); longs index 182.8 points, a decrease of 0.8% MoM (decline in the expansion). Combining fundamentals forecasts global steel market within a month or sideways poised to continue the trend since mid-March, the market is expected in late shock rise. (See Figure 1, Figure 2)
Pohang Iron and Steel Company in 2013 produced a significant decline in operating results: Pohang Iron and Steel Company in 2013 crude steel production 37.7 million tons, an increase of 4%; finished steel sales of 34.9 million tons, an increase of 3%; operating profit of 2.215 trillion won, representing a decrease of 20.6%.Posco spokesman said its revenues and profits are subject to the decline in steel prices dragged down the won strengthened against major currencies also eroded the company's profits and repatriation of export earnings from overseas.
Asian steel market: basically stable. The area CRU index 167.4 points, down 0.1% MoM (down convergence), a decrease of 10.7% year on year (down to expand). (See Figure III)
Flat material: Market prices were mixed. In India, due to strong domestic demand and rising production costs and other factors, the Indian steel producer announced the increase again in February HRC contract price of Rs 1,000 / tonne ($ 16 / t). After the price increase, the domestic general merchandise volumes shipped rose 3.8-3.9 million rupees / tonne (U.S. $ 609-625 / t), 7.5% import duty on quite the level of imports of U.S. $ 567-581 / ton (CFR). Market analysts have said that due to the rupee depreciation, imports less competitive resources. Such as China Resources at $ 580-590 / ton (CFR), virtually no competition.However, it is unable to determine whether the price increase was accepted by the market, there are signs that domestic buyers are likely to resist price increases. Therefore, the success of the price changes in the market remains to be seen. It is said that Indian mills are still seeking to improve in March contract price of hot rolled. JSW Steel said that since last November, the domestic ore price and shipping costs have increased substantially increase the cost of production of hot rolled Rs 1100 / t, so that the cost of steel production in India rose substantially. But the local steel trade believe that steel imports decreased insufficient domestic supply of hot rolled steel brewing is an important reason for price increases. However, in February the Indian HDG coil export prices decreased slightly but 5-8 dollars / ton, to the U.S. dollar turnover of 870-880 / ton (CFR). It is reported that the slowdown in demand is mainly from the United States, as well as Taiwan and South Korea compete steel reinforced. In Thailand, due to increased demand, the domestic steel 1.95-2mm thick hot rolled factory goods rose to 22,000 baht / ton, the industry is expected to later this month or early March is expected to rise to 23,000 baht / ton. To this end, the Thai authorities concerned that will be imported hot-rolled flat products of non-alloy conduct safeguards investigation.
Long products: market prices generally stable. In South Korea, although the end of the Lunar New Year holiday, but the South Korean domestic longs market is still sluggish. Insiders said that this is a weak seasonal demand, year after year. Of course, a small South Korean stocks close to 450,000 tons of steel rebar, H-beam stocks rose to 190,000 tons more than the market weakness is also the main reason. To this end, the Korean major long steel producer Hyundai Steel and Dongkuk Steel are plans to carry out annual maintenance to adjust market supply and demand. In Japan, the largest producer of rebar British Steel, said in February the domestic rebar contract price remained stable, specifications for the 16-25mm rebar maintain the listing price 70,000 yen / t ($ 672 / t), the price of other profiles basically stable. In Taiwan, Feng Hsin Iron Spring first opened, all products fully flat plate, rebar still 17,600 yuan / ton, steel 19,700 yuan / ton.
Trade relations: (1) January 30, the Indonesian government's Committee on Safeguards (KPPI) should both domestic Krakatau steel plant and IspatInd request on imports of hot-rolled wire rod special safeguard investigations. Two mills said they had submitted substantial evidence to ensure that the case and the allegations continue to increase imports have caused injury to the domestic wire rod manufacturers. The survey covered the following products for 14mm diameter rod; (2) January 30, should Sahaviriya Steel Industries Public Company Limited, G Steel Public Company Limited, GJ Steel Public Company Limited and Sahaviriya Plate Mill Public Company Limited, etc. 4 apply for the Thai companies, Thai imports of non-alloy steel, hot-rolled decided to be flat material safeguards investigation.
Comment: According run trend is expected to combine the fundamentals, the recent Asian steel market will fluctuate run trend.
European steel market: trends becoming soft. The area CRU index 158.7 points MoM decrease of 1% (from up to down), reduced by 7.8% year on year (down to expand).
Flat material: Market prices were mixed. In Northern Europe, the major steel suppliers working on two quarterly contract price negotiations with customers, but learned mostly spot buyers stay on the sidelines.Currently, Germany and other geothermal volume traded at 450-460 euros / tonne, cold rolled at 530-540 euros / tonne, were roughly flat with the previous price. Market analysts have said that the market prices compared with last December, only to achieve 5-10 euro / ton increase, far below expectations mills.However, due to the prolonged delivery of steel, may help to support current prices. February, the Nordic slab factory remained at 500-510 euros / tonne, import resources offer slightly rose 450-460 euros / ton (CFR). In southern Europe, market prices also rose weak trend. Currently, the Spanish newspaper HRC 450-460 euros / tonne (FOT), cold rolled newspaper 520-530 euros / tonne (FOT), broadly in line with the previous. February, Southern Europe because resources are relatively thick tight spot prices rose slightly, the current local commercial grade plate S235 ex-factory prices 10 euros / tonne to 475-485 euros / tonne.Meanwhile, imports also rose 10-15 Resource quote EUR / ton to 430-440 euros / ton (CFR). But there is steel trading business, said demand remains weak, the rally would have difficulty maintaining. In Brazil, the main steel mill is brewing in March or April on average 8% price increase for long products. In Turkey, as domestic demand continues to weaken, Turkey galvanized and color coated paper manufacturers began to customers on the basis of the existing offer $ 10 / t discount. Currently, local steel 0.5mm HDG at $ 790-810 / t, 0.5mm color coated paper at $ 960-1000 / t. Meanwhile, in March scheduling HRC export offers decline further $ 5 / t to $ 570 / ton (FOB), but the local HRC price stable at $ 590-595 / t. In the UAE, due to weak market demand, the UAE flat steel import prices edged down $ 10-15 / t. Currently, CIS, India, 4-5 month delivery HRC at $ 560-570 / ton (CFR), lower than the previous price $ 570-585 / ton (CFR). Cold roll import price was U.S. $ 650-660 / ton (CFR), lower than the previous 660-670 dollars / ton (CFR). Hot-dip galvanized coil import price fell $ 10 / t to $ 780-800 / ton (CFR).
Long products: market prices becoming soft. February, prices edged profiles in Europe, and the spread of small and medium-sized timber between profiles have been significantly reduced. Currently, the Nordic one type timber delivery price reached 570 euros / tonne, the price was close to Southern Europe and Scandinavia, but rebar prices remain at the level of 450-470 euros / tonne between. In Poland, due to weak seasonal demand, coupled with falling scrap prices and import pressure, so that in February the Polish domestic rebar prices fell by about 12 euros / tonne, the current local price of only 480 euros acceptable mills / ton (FOB) while Belarus mills reported only 432 euros / tonne (DAF, Poland).
Trade relations: the European Industrial Fasteners Institute should apply, the EU decided to levy anti-dumping sunset review investigation on Chinese steel fasteners.
Comment: According run trend is expected to combine the fundamentals, the recent European steel market will continue to be stable and inflation trend.
American steel market: shock run. The area CRU index 179 points, fell by 0.5% MoM (rose, fell), up 5.2% year on year (with the previous flat). (See Figure V)
Flat material: Market prices were mixed. In the U.S., much of the eastern and midwestern cold invasion suffered severe suppression sheet demand, which led to the recent weakening of the U.S. plate prices.Currently, the U.S. Midwest HRC ex-works and then drop 10 dollars / short ton to 650-670 U.S. dollars / short ton, cold rolled down to $ 770-780 / short ton. Plate aspects. Driven by resource constraints, February southeast A36 commodity grade plate ex-factory price continued to rise $ 10 / short ton to $ 790-810 / short ton. Currently mills earliest delivery time is early March, but some mills have been routed orders in May.There are steel trading business, said, before Nucor, SSAB and ArcelorMittal announced the increase of the price of $ 30 plate / short ton, the market has basically been accepted. To this end, SSAB North America, Inc. announced price increases of $ 40-60 Canadian plate / short ton, executed immediately. SSAB said the price increase is mainly for customers in Canada, higher than the domestic price increase is mainly due to the depreciation of the Canadian dollar's sake.
Long products: market prices basically stable. In the United States, due to inclement weather coupled with increased imports, Nucor Steel Corporation has announced cancellation announced in mid-January rebar price $ 20 / short ton decision, dynamic company and Gerdau steel long products company in North America to follow the work. Steel said the person, mainly due from Turkey, Mexico and other countries imported resources concentrated arrival, as well as U.S. scrap prices lower. Currently, rebar mainstream price down to $ 630-640 / short ton, medium H-beam listing price $ 780 / short ton, roughly flat with the previous.
Trade relations: (1) U.S. Department of Commerce issued a notice to anti-dumping sunset originating in China, India, Indonesia, China Taiwan, Thailand and Ukraine, hot-rolled carbon steel flat products for review affirmative final determination, originating in India , hot-rolled carbon steel flat products in Indonesia and Thailand sunset review of countervailing products make sure the final ruling, decided to continue the extension of dual 5 years; (2) January 31, ArcelorMittal North American timber companies and other long- Six representatives of the U.S. steel industry to the U.S. Department of Commerce and the International Trade Commission made a request on the origin of anti-dumping on China's Carbon and alloy steel wire rod, countervailing investigations. Currently, the U.S. International Trade Commission preliminary ruling procedure has been initiated damage, the U.S. Commerce Department is expected to decide whether to initiate an investigation on Feb. 20; (3) February 4, the U.S. International Trade Commission (USITC) announced its decision on the original produced in China, South Africa's iron alum alloy sunset review of anti-dumping Industry Injury Investigation, will review anti-dumping measures in case of cancellation, the reasonable foreseeable period, substantial damage to the product concerned to the U.S. domestic industry will continue or re- occur.
Comment: According run trend is expected to combine the fundamentals, the recent American steel market will continue strong trend.
