Export offers dropped for both long and flat products signaling the desperation of the mills to get rid of surplus domestic material. As production soared to over 2 million tonnes of crude steel per day in early March inventory built up exerted on the price levels since demand remain sluggish.
CISA also reported that finished steel inventories at its members climbed to 12.85mln tonnes on Mar 10, up 1.5% from end-Feb and up 21% from end-Jan. Given the pressure of growing inventories, producers have been forced to cut list prices to secure orders. Plummeting export levels reflect the urgency in mills to liquidate material.
Global market yet struggling for normalcy demand from the traditional markets viz., South East Asia, India and Middle East remained low. Europe has shown some activity off late with approaching summer. However the stockiest traders in general remained circumspect and inclined to source from nearby mills to cut short the lead time and inventory cost.
Coming day is unlikely to radically turn the tide.
Change is on 22nd March 13 as compared to 15th March 13
In USD per tonne
Source - Strategic Research Institute