South Korean export offer prices for hot rolled coils (HRC) are riding on an upward trend. Overseas market conditions are improving from the previous slump, according to industry observers. A recovery of the market conditions can be seen in the rising prices for HRC on the export front. The offer prices for South Korean HRC to be shipped in October and November increased by $20-25/mt from the offers for shipment in August and September.
South Korean producers of HRC suggested their offer prices in a range of $700-710/mt FOB for export to the Southeast Asian market in August and September. But their offer prices for HRC to be delivered in October and November have increased up to a range of $725-730/mt, even though their contracts are being concluded at $720/mt.
"It seems that the current upward trend of HRC will continue for some time," said an industry official, adding, "Overseas market conditions for HRC seem to be making a recovery." However, actual demand for the products has not improved as much as expected.
Meanwhile, offer prices for the export of South Korean ordinary steel plates to be shipped in October and November are staying in a range of $780-800/mt without showing any particular change from the previous offers for shipment in August and September. "Export prices for domestic steel plates are steady, even though local producers of plates have tried to raise their export prices. Their contract volume is not increasing much either," said the industry official.
Furthermore, the export price for heat-treated steel plates from South Korea for shipment in October and November has dropped by $40/mt to the level of $1,000/mt from the previous price of $1,040/mt for shipment in August and September. Such a drop in the export price for heat-treated steel plates resulted from the supply glut of the products in the wake of POSCO Gwangyang Works' heat-treating furnace expansion works in July.