May begins quiet in Asia

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.