TEX reported that the export market of steel H beams has still been sluggish even after the Chinese New Year and such situation continues that there is no sign of price increase for the time being.

Hyundai Steel of Korea once proceeded with negotiations undercutting on price to USD 780 to 790 CNF but at present, it is proceeding with negotiations at the price level almost similar to that of the Japanese mills. However, the Japanese mills and also the Korean mills are seen to be difficult to raise their prices above this level at present. It is because as the Chinese mills are offering prices at the level of USD 700 C&F, prices are led by such price level. The European mills are offering prices to Middle East, and prices of ArcelorMittal are said to be the level of USD 800 CNF with delivery from the Spanish works.

Compared to other steel products, prices of H beams can be said to be stabilized, and price rise of shapes and sections also are expected as prices of flat products are going up.

In Korea, Hyundai Steel is said to cut down the discount range of various steel products by KRW 30,000 to KRW 50,000 from February 2012. It is the virtual price increase, and prices of small sized and large sized H beams seem to become KRW 990,000 and KRW 1,080,000 respectively.

In the backdrop, there are price increase of steel scrap and hike of electricity charges. Responding to this, offer prices of that country are expected to be raised further.

(Sourced from TEX Report Limited)