Asian steel market: continues to rise. The benchmark steel price index of 120.4 points in the region rose by 1.3% on a week-on-week basis (increase in the increase), with a month-on-month increase of 1.4% (the increase was converging), and a month-on-year decline of 6.3% (a concession), down 9.6% year-on-year.

In terms of flat products: market prices continue to strengthen. In Vietnam, the Formosa River Static Steel Plant recently said it will raise the price of hot rolled coils in June. According to industry analysts, despite the recent increase in iron ore prices, the price of hot rolled coils in Vietnam fell. However, Europe, India and Turkey have maintained stable HRC offers for Vietnam. Therefore, it is expected that the Formosa River Static Steel Plant may raise the price in June by US$10/ton. In Japan, in view of the shrinking domestic demand, Nippon Steel plans to expand its overseas business and focus its expansion strategy on the fast-growing Indian market. At the same time, it plans to take advantage of the growing overseas market by acquiring local steel companies to avoid India's rising nationalist protection sentiment. Nippon Steel's new president, Hashimoto Hideyoshi, said that the creditors of India's Aisha Steel approved the joint acquisition of this heavily indebted steel asset by ArcelorMittal and Nippon Steel & Sumitomo in October last year. The two joint acquirers have drawn up plans to double the production of Aisha Steel in the next few years. In South Korea, the South Korean steel industry's earnings in the first quarter of this year may be bleak due to soaring raw material prices, falling steel prices and continued growth in trade protectionism. According to FnGuide, a corporate tracking agency, the market generally predicts that Posco's operating profit for the first quarter of this year will fall 22% to 1.1 trillion won ($962 million). In the same period, Hyundai Steel and SeAH Besteel's operating profit is expected to fall by 20% and 34%, respectively, to 234 billion won and 22.9 billion won. Some industry observers said that the main reason for the weakness of the Korean steel industry is the soaring price of iron ore from steel raw materials. As of April 10, the ASEAN hot coil import price was $542/tonne (CFR), down $8/ton from the end of last month. China SS400B 3-12mm hot rolled coil export average price of 535 US dollars / ton (FOB), SPCC 1.0mm cold rolled coil export average price of 575 yuan / ton, DX51D + Z 1.0mm galvanized coil export of 630 US dollars / ton (FOB ), and they are generally the same as the previous period.

In terms of long products: the market price has risen steadily. In Singapore, some manufacturers said that the local purchase weight CFR price for 10-40mm rebar should be $510/ton ($505/tonne real-weight FOB quote), but based on current quotes and enquiries, the downturn, It is not certain whether any deals will be reached at this price level. Some traders said that due to the sufficient inventory in Hong Kong's local market, local procurement activities have stagnated, and it is difficult for the rebar price of rebar to break through $500/ton (the FOB real price is $487/ton). As of April 10, the BS4449500 grade rebar CFR Southeast Asia reference weight price of 16-32 mm diameter was US$506/ton, up by US$1/ton. In Vietnam, the General Administration of Customs said that Vietnam’s total steel exports in the first quarter of 2019 were US$744 million, a year-on-year increase of 5.8%. In March, Vietnam made a profit of 280 million US dollars from steel shipments, an increase of 60.3% from the previous month and an increase of 6.8% from the same period last year. Among them, the largest steel sales volume is sold to the United States, accounting for 19.64% of the US market share. The amount of steel exported from Vietnam to Hong Kong, the United Kingdom and South Africa has also increased. In contrast, steel exports to Saudi Arabia and Myanmar decreased by 60% to $1.1 million and $6.6 million, respectively. In Japan, Nippon Steel Stainless Steel Co., Ltd. announced the adjustment plan for the price of stainless steel wire rods for contracting from March to May 2019 (delivery from April to June). Among them, the price of nickel-based basic steel grades such as SUS304 remains unchanged, and the price of chromium-based basic steel grades such as SUS430 is reduced by 5,000 yen/ton. This is the chrome-based price cut for two consecutive quarters. Some insiders said that if the nickel price level can continue to rise after rising in the previous period, the price of nickel in the next period may increase. Japan's fine wire has recently made the same adjustment to its April stainless steel wire prices. In the first half of April, the average export price of China's B500 12-25mm rebar was 525 US dollars / ton (FOB), which was roughly the same as before.

In terms of trade relations: (1) On April 2, the Ministry of Commerce and Industry of India issued a notice stating that anti-dumping cases against aluminum-zinc alloy flat rolled steel products originating in or imported from China, Vietnam and South Korea should be initiated at the application submitted by Indian domestic enterprises. (2) On April 9, the Indonesian Ministry of Finance issued Announcement No. 24/PMK.010/2019, which decided to extend the current 11.93% anti-dumping duty originating from or imported from China H-beam and I-beam, as published in this announcement. Effective 14 days after the date of validity, valid for 5 years.

Summary: Based on the fundamentals of the Asian and Chinese markets, the Asian steel market in the second half of April is expected to continue to fluctuate.