Asian Steel Sheet Market in Confusion

Asian steel sheet market is in confusion. Hot rolled coil market price shows a rebounding sign when Chinese government abolishes export tax rebate of steel products and POSCO of South Korea raises the selling price. On the other hand, cold sheet and zinc coated sheet prices hasn’t hit bottom.

Cold rolled sheet market price is FOB US$ 730-750 per tonne in Asia. Galvanized sheet price is around FOB US$ 770. Both prices lowered by more than US$ 100 from the recent peak. An integrated steel maker source said the users purchase cold and galvanized sheets just as much as immediate consumption on spot. Export trade negotiations are also inactive between Japanese steel makers and offshore users.

Chinese government announced abolishment of export tax rebate on steel products. Meanwhile, the rebate is unchanged at 13% for cold rolled strip with less than 3 millimeters of thickness and surface treated sheet. Consequently supply of cold rolled sheet and surface treated sheet is maintained surplus in Asia. Chinese brokers are said to increase sales offers in Southeast Asia.