Steel Demand Weakens, China Steel and JFE-Hong Leong Adjust July Prices Downward

The steel market has entered its traditional off-season, compounded by the rainy season affecting downstream demand. As a result, China Steel and single-rolling mill JFE-Hong Leong have reduced prices for certain steel products in July, while bar steel producer Feng Hsing maintained flat pricing in its latest announcement.

China Steel’s July monthly pricing sees hot-rolled coils (processing grade), hot-rolled sheets and coils (general grade), and cold-rolled coils (general grade) all reduced by NT$300 per metric ton. Electro-galvanized steel coils (fingerprint-resistant, construction), hot-dip galvanized steel coils (construction, paint-grade), hot-dip galvanized steel coils (appliances, computers, others), and electrical steel coils (medium-low and high specifications) remain unchanged.

For its Q3 quarterly pricing, China Steel will raise prices by NT$1,000 per metric ton for steel plates, bar and wire rods, hot-rolled sheets and coils (medium-high carbon, tool steel), cold-rolled coils (medium-high carbon, tool steel), and cold-rolled coils (drum grade). Automotive-grade materials will increase by NT$500 per metric ton.

In a press release, China Steel cited Middle East conflicts driving up energy and commodity costs, affecting global economic momentum. Monthly products, which rose in line with international steel prices since the beginning of the year, have now entered a consolidation phase, leading to a relatively low flat pricing strategy for July. Quarterly products, however, reflect accumulated raw material cost increases exceeding expectations, prompting moderate price hikes.

JFE-Hong Leong also announced its July domestic and August export pricing. Domestically, hot-rolled and cold-rolled products are both reduced by NT$300 per metric ton, while galvanized products remain unchanged. Export prices are adjusted based on product type and destination, with actual quotations determined by local market conditions.

JFE-Hong Leong noted that while global manufacturing remains in expansion, procurement has turned cautious with the onset of the hot and rainy season. Additionally, the European Union’s implementation of a 50% tariff-rate quota (TRQ) system starting July 1 increases pressure on Asian steel exports. Benchmark steel mills have recently announced flat or low pricing, indicating a short-term trend toward weak supply-demand balance in the steel market.

Bar steel producer Feng Hsing announced its latest pricing on June 15, maintaining flat prices across the board for scrap steel procurement, rebar, and structural steel base prices. Scrap steel procurement remains at NT$9,900 per metric ton, rebar at NT$18,400, and structural steel base price at NT$25,000 per metric ton. Feng Hsing cited weaker rebar shipments due to continuous rainfall as the reason for holding prices steady.