Asian flat steel prices growth slows down

In September, the growth trend of Asian flat steel products market slowed down, with China's market rising and falling. China's domestic steel plate prices fell 1.6% month on month in September, ending a four month rise. In September, the steel plate Market in other parts of Asia continued to warm up, coupled with the rise in production costs, steel mills in Japan, Vietnam and other countries raised steel prices.

In Japan, the balance between supply and demand of flat steel products has been restored, and the delivery volume to downstream manufacturing users has increased. Most steel enterprises have transferred cost pressure to downstream by increasing steel prices. Formosa, Vietnam's largest steelmaker, announced on September 11 that the price of hot rolled coils delivered on November 20 would rise by $45-50 per ton compared with October. However, due to the recent domestic market price adjustment, Chinese steel mills actively export hot-rolled resources.

In the later stage, manufacturing activities in various countries are gradually recovering. India is expected to continue to increase automobile sales in October and November, directly boosting steel demand; Vietnam's re rolling mills generally expect that the end market demand for cold rolling and galvanizing will be stronger before the end of the year. On the whole, the demand of flat steel market in Asian market tends to be stronger, and steel enterprises gradually restart blast furnace to increase the supply. Previously, steel mills raised steel prices mainly due to cost pressure, while the fall of iron ore price weakened the cost support. The continuous price increase of steel mills in the downstream was also in conflict with the continuous price increase of steel mills. In October, the flat steel market in Asia may be in shock operation.