June 2011 | Welded steel tube & pipe
Asian HR coil drops: Asia Market Analysis
Weaker coil prices are likely to bring down input costs for a wide range of welded tubular products.
Asian HR coil prices came under severe pressure in June. While Chinese HR coil export prices have traded around $700/tonne fob for an extended period, other Asian suppliers had (until late May) held HR coil at closer to $800/tonne fob. A lack of regional sales and excess supply forced them to discount heavily and by the end of June, South Korean, Japanese and Taiwanese HR coil is being offered at around $700/tonne fob to Asian destinations. With demand expected to remain weak in the near term as the rainy season impacts construction and distributors are well-stocked, we expect little upward movement in coil pricing prior to September.
Tubular products to follow
Weaker coil prices are likely to bring down input costs for a wide range of welded tubular products. For now however, South Korean and Japanese mills are not yet cutting API prices, but hollow sections buyers...
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