Metalnewsnet 17 Jun ：

TEX reported that Asian market conditions for steel export deals will continue to mark time for the next few months as users in various destinations favor taking a wait and see stance altogether. As a result, Japanese integrated steelmakers are expected to wait until what they would negotiate in earnest for August and Septembers of their various steel exports to Asian destinations.

Asian export market prices have turned weak since the middle of the April to June quarter, for which several factors are held responsible. First, China's steel exports are on the increase. Second, China's domestic steel market conditions have fallen in prices. Third, South Korea faces a depreciation of the won against the US dollar. Fourth, rumor is afloat about revisions of China's export duty rebates.

China's steel exports this year totaled 3,200,000 tons in March and 4,150,000 tons in April. In the background are Chinese steelmakers' positive exports to meet better sales prices than domestic deals. On their part, various users in Asia have turned to a wait-and-see position in anticipation of lower prices in what they purchase from China. Under the existing circumstances, Chinese steel exports are expected to trend upward at least until June shipments.

Meanwhile, a depreciation of the won is seen as relating to South Korea's confrontation with North Korea. But there are expectations for an easing of the tension shortly between the two countries. Besides, South Korea's domestic manufacturing industries, focusing on autos, are in good shape. Therefore, there are few prospects of South Korean steelmakers falling into a deterioration of their operations.

( from TEX Report Limited)