Asian region cold, hot rolled steel sheet coil prices fell significantly

On Tuesday, China's domestic trade hot roll prices mixed, East China's main markets showed a certain rebound. However, export prices continued to come under pressure, despite a slight appreciation of the renminbi against the dollar today. There are not many official offers from large steel mills. According to traders' bids, the mainstream export price of SS400 hot rolls is $505- $520 / ton FOB, and the CIF transaction price of the same type of resources in Southeast Asia is $500- $505 / ton CFR. Due to the small amount of very low offers in the Southeast Asian market in the past, the present level of enquiry is still very low, and the mainstream resources are often on the high side, making business difficult.
In the past two weeks, the export orders of China's hot and cold rolls were quite good. In addition to the traditional Southeast Asian market, a certain amount of transactions were completed, and the export orders to Turkey were also quite large. Including more than 100,000 tons of hot coil, the CIF price is around $580 / mt CFR, and this week the quoted price dropped to $560-570 / mt CFR. In addition, I heard that the cold-rolled sheet coil to Turkey has also completed tens of thousands of tons of transaction order, the shipping date is December. Similarly for billets, Chinese billets were quoted at around $545- $555 / mt CFR to Turkey and Saudi Arabia last week. However, according to traders' feedback, orders to Turkey often require full letter of credit, which increases the risk of uncertainty for exporters.
Cold plate export price decline this week is also very obvious, to understand that hard rolled, cold rolled, 80g galvanized sheet coil mainstream resources offshore prices were 5700-585 US dollars/ton FOB, 580-590 US dollars/ton FOB and 630-645 US dollars/ton FOB, and last Friday compared to about 15-20 US dollars/ton down. Many traders reported that orders received in October were much less than those received in September, and some traders reported that orders received at the end of the month were slightly improved.
On the whole, the mainstream price of cold and hot rolls in Asia has reached a cumulative decline of $20 in the past week, with a monthly decline of $30-40. By Tuesday, hot-rolled coil prices in Southeast Asia had fallen to the same level as, or even lower than, slab prices in most supplier countries. According to the survey, the current feasible price of imported slab from Southeast Asia is about 530-540 USD/ton CFR, and the feasible price of square billet is about 495-505 USD/ton CFR. It is understood that the main resources for Russia, Indonesia, China, South Africa and other places, the price level is not much different. That is to say, the current price of hot roll to land in Southeast Asia is similar to that of blank, which is $20-30 / ton lower than that of slab.
An exporter in East China reported that the reason for the situation was that the cold and hot roll prices fell too much due to the sluggish manufacturing orders in Southeast Asia. The contradiction between supply and demand of medium plate is relatively eased, and the rolling mill is still willing to buy the slab rolled medium plate. On Tuesday, China's leading steel mills cut the price of medium and thick plate 10-15 US dollars/ton, Hebei region's export price focused on 540-550 US dollars/ton FOB.
In fact, Vietnam's manufacturing sector has seen a sharp slowdown in export orders since September, with total foreign trade at $29.9 billion, the second lowest this year, and a fourth overall weaker-than-expected forecast. Falling purchasing power among European buyers is also to blame.