Steel Sheet Supply to Tighten More in Asia

Supply and demand balance of steel sheet is expected to tighten more in Asia. The demand keeps steady for automobiles and electric appliances while some of local steel makers are in the supply troubles due to the blast furnaces’ smashup. Sheet market price is already rising in Asia to reflect high material costs but expected to surge more and faster.

Hot coil users are requiring the purchase price at FOB US$ 700 per tonne to Japanese sheet makers for May shipment, according to Japanese integrated steel maker source. Japanese steel makers are likely to target US$ 750-800 when slab market price is already reaching US$ 600.

Japanese sheet makers are still in the price negotiations with South Korean re-rollers for April-June shipment. South Korean users seem to be approving above US$ 650 partially for April shipment, up by US$ 70-80 from March. However, Japanese sheet makers are offering US$ 200 price hike for April-June.