The steel industry is a constantly evolving landscape, shaped by a multitude of factors that span across continents and industries. From the bustling markets of Asia to the industrial powerhouses of Europe, the dynamics of the steel market are in a constant state of flux. In this article, we delve deeper into the recent developments and trends in the global steel industry, shedding light on the stability of pricing, the forces that drive the market, and the delicate balance of supply and demand.
China
Domestic prices for HRC in China saw a notable increase this week, reaching Yuan 3,830/t ($529/t), rising by Yuan 50/t ($7/t) on April 20. In contrast, export prices for HRC remained steady at $535/t. Interestingly, the price of rebar also saw a significant uptick, climbing to Yuan 3,810/t ($526/t) with an increase of Yuan $160/t ($22/t), driven by a surge in domestic demand for infrastructure projects.
Japan
Export scrap prices in Japan were at JPY 51,800/t ($335/t) FOB on April 19, driven by a surge in demand from Viet Nam. However, in the domestic market, a major steel mill announced a reduction in scrap prices by JPY 1,000/t ($6/t), bringing the average price down to JPY 51,160/t ($307/t). With weak demand from buyers, participants anticipate further adjustments in scrap prices in the near future.
Europe
The price of HRC in Northern Europe was reported at EUR 630/t ($670/t) on April 16, marking a decrease of EUR 21/t ($22/t) compared to the previous week. Similarly, the price of HRC in Southern Europe stood at EUR 622/t ($659/t), showing a decline of EUR 13/t ($14/t). It appears that prices may have hit a low point, as demand shows no signs of improvement and bookings are moving at a slow pace.
America
In contrast to the previous week, the price of HRC in the US saw a significant drop, reaching $805/MT on April 23, a decrease of $25/MT. On the other hand, export of hot rolled bars from the US surged by 36.6% in February compared to the previous month, totaling 41,574MT valued at $54.9 million. The top destinations were Mexico with 17,461 MT and Canada with 11,500 MT.
Brazil's export of HRC has shown remarkable stability over the past two weeks, holding steady at $850/MT. Similarly, the export price of Brazilian rebar has remained largely unchanged compared to four weeks ago. Additionally, the price of high-grade Brazilian iron ore (65% Fe) has seen a slight increase to $129/MT, up by $6/t from just a week ago. However, in the current week, domestic scrap prices in Mexico have dropped by $15/MT, now standing at $374/MT.
Viet Nam
A prominent steel mill in Vietnam recently announced a reduction in their HRC prices, now offering at $585-$595 per ton (SAE1006, skin pass) CIF for delivery in June and July. Meanwhile, imports of HRC (SAE1006) from China have remained relatively stable, ranging from $560 to $565 per ton CFR at the main port. Despite this price adjustment, demand for construction projects in the region continues to lag behind, indicating a slower pace of activity in the industry.
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