The region's steel mills remain under pressure from persistently elevated levels of low-priced Chinese exports. Long products prices declined throughout the month by an average of $14/t as the region sought to compete with Chinese material. Near-term downward pressure will remain on long products prices as the lower cost of BOF production flows into the price of Chinese material, exports of which will remain at elevated levels and continue to dominate regional markets. The industrial recovery in Japan is continuing with the Markit/JMMA 'flash' PMI in June increasing to 51.1, from 49.9 in May, moving back into expansion territory. This is a positive sign that the consumption tax increase will not have a lasting impact on the domestic economy, and that growth will continue in steel using sectors.
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