Asian steel price difficult to rise

In Southeast Asia, HRC import market in the doldrums. Japan and Korea Resources
reported $ 540 / ton (CFR), low turnover of $ 10 / t. Because too large decline
in China Resources recently, Mills seek price increases $ 15 / ton (CFR) to reach
$ 530 / ton (CFR), but the Southeast Asian market is the rainy season, the
terminal steel industry demand is low. In current market conditions Southeast
Asia steel price is difficult to
higher in the short term.

In India, the hot coil market sluggish. Due to weak international market, domestic
financial constraints, market continued pessimism, coupled with continuous
heavy rains hit India, market demand fall into sluggish. Currently local HRC
ex-works remained at 33750-34250 rupees / tonne (566-575 U.S. dollars / ton),
which remained unchanged since early April.

In Korea, the steel market remains weak, HRC
market decline. Pohang retail price of hot rolled SS4003mm in the local market
in May fell 20,000 won / t ($ 18 / t) to reach 73-74 ten thousand won / ton
(648-657 U.S. dollars / ton). Chinese resources export prices to South Korea also
in decline, SS400B3mm HRC prices is 515 U.S. dollars / ton (CFR), which fell
nearly 40 U.S. dollars / ton in May. As the demand outlook is not optimistic, combined
ore prices fall caused the costs support of steel prices reduced. South Korean
domestic hot rolled coil prices and
import prices may further decline.

Korean deformed
market weakness. Local SD40010mm deformed bar retail price is 66-67 ten
thousand won / ton, unchanged for 3 weeks. Currently the local construction
activity to become more active, but with the advent of summer, the market
demand is expected to soon fever. Although production of deformed bar has cut during
the summer, but low demand for local and export markets offset benefits of reduction
of output. South Korea is expected in the next two months deformed bar market
is not likely to rise.

In Japan, steel section market keeps stable. Tokyo market SS400 H-beam price
of about 7.0-7.1 big ten thousand yen / ton (737-748 U.S. dollars / ton), which
remained unchanged since mid March, compared to beginning of the year just improve
? 2,000 / t ($ 21 / t). In view of the local construction industry, it has robust
demand so the Japanese steel section prices will slowly rise.

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