Favorable Factors:
1. Mills cutting output to defend margins — supply discipline supports price floor
2. Raw material prices show signs of stabilization — cost floor prevents further FOB erosion
Adverse Factors:
1. Yuan remains soft against USD — weak CNY keeps dragging FOB pricing lower
2. Strip steel prices near recent lows — limited cost-push momentum for FOB upside
3. Off-season demand in full swing — downstream buyers holding back, thin transactions
4. EU safeguard quota cut 47% effective July 1 — European market access sharply reduced
5. CBAM carbon costs now in payment phase — adds extra cost layer on top of 50% tariff
Outlook:
FOB likely to stay flat with slight downside bias next week — raw material shows no strong upward momentum and off-season demand shows no sign of picking up. Yuan softness continues to cap dollar pricing, while EU trade barriers keep squeezing export margins. Mill supply discipline should prevent a sharp drop.
Need this week’s prices for your specification? CREATEEL supplies ERW pipe, seamless pipe, SSAW/LSAW pipe, and galvanized pipe with 24-hour spot quotations and full Mill Test Certificates.
For inquiries, please contact [email protected]
