International Steel Market Daily: Indian buyers have lower bargaining power for Chinese hot coils. Vietnam's price advantage resources flow into the Indian market (June 25, 2024)

Hotspot tracking

Mysteel has learned that recently, China has quoted a price of $550/ton CFR for Indian heat coils, with an August shipping schedule. However, Indian heat coil importers have offered a counteroffer of approximately $530-535/ton CFR for Chinese heat coils, a decrease of approximately $10-15/ton from last week. While Indian buyers have seen a significant decrease in bargaining, Mysteel learned that India has imported approximately 70000 tons of Vietnamese hot coils at a price of $575-580 per ton, with an August shipping schedule.

Although the price of Indian imported Vietnamese hot coils is relatively high, due to free trade policies, Indian imported Vietnamese hot coils are exempt from import tariffs, while imported Chinese hot coils require a tariff of 8.25%.

The Indian importer stated that the current price of hot coils imported from India to Vietnam is approximately 49750-50250 rupees per ton EXW Mumbai. If the price of imported hot coils from China wants to reach the corresponding level, they must be imported at a price of approximately 530-535 US dollars per ton of CFR (approximately 49700-50150 rupees per ton of EXW Mumbai).

Mysteel also learned that the current ex factory price of hot coils in India is approximately $595-610 per ton EXW, with a weekly increase of about $10 per ton. Some market participants have expressed that Indian steel mills are not in a hurry to ship and are currently unwilling to lower prices for sale.

[Import and Export Dynamics]

International Market Dynamics

World crude steel production increased by 1.5% year-on-year in May 2024

According to statistics from the World Steel Association, in May 2024, the world crude steel production of 71 countries was 165.1 million tons, an increase of 1.5% from May 2023.

Among them, the crude steel production in Africa was 1.8 million tons, an increase of 0.9% compared to May 2023. The crude steel production in Asia and Oceania reached 122.1 million tons, an increase of 1.6%. The crude steel production of the European Union (27 countries) reached 11.7 million tons, an increase of 1.8%. The crude steel production of other European countries reached 3.9 million tons, an increase of 6.2%. The crude steel production in the Middle East reached 5.2 million tons, an increase of 4.6%. The crude steel production in North America was 9.4 million tons, a decrease of 0.9%. Russia and other CIS countries (excluding Ukraine) produced 7.7 million tons of crude steel, an increase of 2.8%. The crude steel production in South America was 3.3 million tons, a decrease of 8.2%.

Brazil's steel imports in April increased by 11.4% year-on-year

According to data from the Brazilian Steel Association, in April 2024, Brazil imported 449000 tons of steel, a year-on-year increase of 11.4%; Exports of 740000 tons, a year-on-year decrease of 11.5%; Domestic production reached 2.727 million tons, a year-on-year decrease of 1.1%; The domestic sales volume was 1.726 million tons, a year-on-year increase of 9.5%.

From January to April, Brazil imported 1.747 million tons of steel, a year-on-year increase of 21.5%; Exports of 3.283 million tons, a year-on-year decrease of 17.1%; Domestic production reached 10.976 million tons, a year-on-year increase of 3.9%; The domestic sales volume was 6.609 million tons, a year-on-year increase of 2.9%.

France's crude steel production in May increased by 36.4% month on month

From January to May 2024, France's steel production increased by 6.6% year-on-year, reaching 4.43 million tons. In May 2024, France's steel production increased by 36.4% year-on-year, reaching 1.09 million tons. Ranked 18th among the world's steel producing countries (out of 71 countries).

France has 10 steel mills, including Saarstahl Ascoval Saint Saulve (with a production capacity of 7.3 million tons/year), LME trithsant lsamuverer (8.5 million tons/year), ArcelorMittal Dunkerque (6.75 million tons/year), Kehler Baden (2.5 million tons/year), Riva Sam Neuves Maisons (8.5 million tons/year), Riva Iton Seine Bonnieres Sur Seine (550000 tons/year), Riva Alpa Gargenville (700000 tons/year) Riva Sam Montereau (720000 tons/year), ArcelorMittal msamuverter - samuveres Sur Mer (4 million tons/year), Celsa France Boucau (annual production of 1.2 million tons). The total production capacity of these factories is 18.85 million tons per year, with a capacity utilization rate of 53.1% in 2023.

The government plans to shut down PSM, the largest steel plant in Pakistan

Due to the inability to pay for natural gas costs, the federal government led by the Sharif faction of the Pakistan Muslim League has decided to shut down the financially troubled Pakistan Steel Mills Ltd (PSM) and plans to cooperate with the government of Sindh to build a new steel plant in the same location. This move has also received support from the Special Investment Promotion Committee (SIFC).

Previously, due to financial issues and natural gas supply shortages, Pakistan Steel Plant suspended operations in June 2015. Recently, Pakistan Steel Plant (PSM) was warned by Suinan Natural Gas Company Limited (SSGC) of Pakistan for not paying a natural gas bill of 61 billion rupees, and stated that if the company fails to pay the debt, it will stop supplying its natural gas. In order to prevent major infrastructure damage, Prime Minister Shahbaz Sharif intervened decisively and chose to close the steel plant and reuse its land, planning to transform it into an export promotion zone or economic special zone.

International Price Summary

Information editor: Zhang Chenyu 021-26094107

Information supervision: Chen Jingfu 021-26093640

Information complaint: Chen Jie 021-26093100

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