In China, average provincial quotations fell by 2.2 percent in February. Buying activity has been unsettled by the country’s strict credit conditions and minimal construction activity, particularly in the northern provinces. Looking forward, dealers do not expect a strong rebound in transaction values in March. The finished steel market outlook remains negative. Domestic steelmakers are reluctant to replenish their depleted inventories. Moreover, collection rates will pick up next month.
Different price scenarios developed in the four Indian regions researched by MEPS (International) Ltd. Tight supply has exerted upward pressure on domestic selling figures. Buyers intend to secure material ahead of the Hindu Holi festival. Importers have been more active, following the rupee’s appreciation against the US dollar. Foreign suppliers are not likely to lower their HMS1&2 (80:20) quotations due to healthy demand in other global markets.
The price growth in Japan was instigated by Tokyo Steel Manufacturing. The steelmaker raised its HMS2 buying prices at all subsidiaries to secure material. Domestic scrap supply had tightened due to firm export shipments from Tokyo and Osaka. Local dealers predict that the market price upturn will continue until stock targets are fulfilled.
South Korean steelworks hold sufficient inventory to cover planned production. Importers sourced material mainly from Japan. Offers from US dealers remained in line with global market trends.
Taiwanese mills, operating electric furnaces, maintained conservative purchasing policies. Only small bundles of material are being procured. Construction activity is not expected to pick up until mid-March.
Source: MEPS