The Japanese blast furnace mills are expected to commence negotiations on hot rolled steel coils for Middle East for September shipment as early as next week. In that region, it falls on the demand season after the Ramadan break, so the Japanese mills intend to study the range of an increase in price seeing inquiries.
In the Middle Eastern region, HR coils of Russian Ukraine and so on are unlikely to have been marketed so much for the time being. It is not reported that movements of Indian mills having disturbed the market at cheap prices in the past are not active.
HR coil prices for that region for August shipment had been concerned about being dragged down by inflow of cheap Chinese products but the Japanese mills could manage to maintain levelling off of prices for July shipment.
As it falls on the demand season after Ramadan in case of September shipment, the market prices are seen not to fall, so the mills intend to raise their prices even slightly. They are on track to raise their prices by about USD 5 or USD 10 month by month with no substantial price increase all at once. The blast furnace mills seem to decide their offer prices as early as early next week and to make offers before the Bon holiday.
Source – The TEX Report