The Import of Steel in Southeast Asia Slowing Down


The import of steel in southeast Asia slows down because the export rebates may be cancelled next year in China, and potential merchants are waiting for a clear policy and dare not jump into orders.

Steel plants and merchants in China are also facing the same dilemma, for there is no profit if they offer a low price, and the oversea buyers do not agree on a high quotation. It is said that some merchants have stopped quoting. At present, steel coil containing boron exported to southeast Asian is quoted at 485 dollars per ton(CFR) and SAE1006 is quoted at about 510 dollars per ton(CFR), but there is few orders. While in Japan, SAE1006 is quoted at about 540-545 dollars per ton(CFR), which can not compete with that in China, so some Japanese merchants have withdrawn from the market. Regarding long-length steel products, some steel plants in Hebei province, China have to reduce or stop producing products during the APEC, and that is why steel plants in China raise the prices of deformed steel bar and long-length steel products. The long-length steel products exported to southeast Asia is quoted at 450-460 dollars per ton(CFR), but there is still no deal now.

In southeast Asia, the Vietnam’s market is worrying, because it has ordered a large quantity of goods and they have arrived in succession, which will bring some pressure on the local market.

Generally speaking, the cancellation of export rebates in China will boost the steel export price. However, whether the price is up or down is determined by not only the oversea demands but also the prices of raw materials like iron ore. In addition, how the steel production in China and steel market change deserves to be paid attention to.