Semi-Finished Steel and Hot Rolled Product Prices Rise in Asia

The market prices of semi-finished steel and hot rolled products are surging in Asia. Raw material prices are set even higher than the market players expected between local steel makers and raw material supplies. Steel product prices are following the material cost upsurge. Steel makers are offering FOB US$ 650 per tonne for slabs. As to hot coils, some users bid FOB US$ 750per tonne for May shipment. These prices are higher by US$ 30-50 than last week.

Steel demand is strong for automobiles and electric appliances in China and South Korea. The demand is also increasing for building construction and civil engineering in Asia. Supply and demand balance of raw steels is tightening.

International market price of pig iron is rapidly increasing. The export from Brazil is reaching FOB US$ 520 per tonne, up by more than US$ 100 from a month earlier, according to Japanese trading house.

Pig iron prices exceeded FOB US$ 400 per tonne, produced in Brazil and Russia, in and after February. Japanese integrated steel makers have recently contracted Chinese pig iron at around FOB US$ 480 per tonne or CIF US$ 510-520.