May has begun silent for the steel markets in Asia due to May Day celebrated in many countries including
China,
Russia,
Ukraine and Vietnam with one week long holidays.
According to recent news,
Japan's steel exports, especially to
Thailand and
Taiwan have decreased year on year in March. Apparently, the increase in
Ukraine and
China's steel exports to
Southeast Asia ate into
Japan's share. South
Korea's steel exports have also declined year on year in April while imports have increased thanks to the strong domestic demand.
Recently the quantity of export offers from the
CIS has reduced due to the strong demand from their domestic markets. Meanwhile, demand for steel products is currently strong in the Indian market but with the beginning of the summer monsoon season towards the end of June, the
construction activities will come to a halt, and then Indian steelmakers may consider increasing their exports.
Steel prices in domestic Chinese market are expected to increase after May Day holiday due to the recent hikes in ex-factory prices. The increase may also be reflected on the export prices.
Meanwhile
iron ore negotiations have not been completed yet and the outcome of the talks is expected to be highly influential on the direction of steel prices in Asia. Currently,
scrap prices are strong and the range of increase in
iron ore price will also determine
pig iron prices which can be used as a substitute for
scrap.