International Steel Market Daily: The U.S. Dollar Continues To Strengthen, China's Steel Export Prices Are Slightly Loose

International Steel Market Daily: The U.S. dollar continues to strengthen, and China's steel export prices are slightly loose (2023.6.12)
According to the Foreign Exchange Trading Center, on June 12, the central parity rate of RMB against the U.S. dollar in the interbank foreign exchange market was 7.1212 yuan, down 97 basis points from the previous value. Affected by the strengthening of the US dollar, China's steel export prices have been loosened to a certain extent, and the export quotations of hot coils from some steel mills have dropped below US$550/ton FOB, and the shipping date is August.
Recently, the price of iron ore has been relatively high, which leads to the high price of HRC in Japan, South Korea and India. The price of SAE1006 HRC to Vietnam is above US$580/ton CFR, while the price of Vietnam’s local HRC is US$560-570/ton CIF. According to Mysteel's understanding, because the price advantage of Chinese resources is not apparent, Southeast Asian customers are relatively cautious in purchasing. In comparison, orders for cold-type plates and medium plates were sold slightly better.
Regarding other regions, procurement in the Middle East has slowed down significantly recently. The main reason is that the price of resources in China was low in May, and the speculative purchases of merchants in the Middle East were strong. The volume of arrivals in June and July was relatively large, and there was no rush to purchase resources for the August shipping schedule.