According to a source, offer prices of hot-rolled (HR) steel coils at the level of $500 CFR in the Asian region seem to have disappeared except those of the Japanese mills. Prices of resources such as iron ore and crude oil are falling, and under such circumstances, it is seen to be caused by the cutthroat sales competition among Russia, China and Korea.|
It is hard to grasp the picture of Russian HR coils. It is because it is uncertain how much quantity is marketed and whether there are cases for contracts to have actually been concluded. Meantime, offer prices of Russian products seem to be lowered. Korea's POSCO is said to counter it, and offer prices at the level of $500 CFR having existed till November disappeared except those of the Japanese mills and are likely to be falling to the level below $480 CFR.
Meantime, even Chinese mills are seen to be difficult to cut their prices any more, and the Japanese blast furnace mill source is observing that prices will crawl along the bottom. And, the source sees that prices will not collapse largely although there is a possibility for a slow decline in prices to continue.