The global steel market is presenting a complex picture this week. While some regions experience slight price increases, a concerning trend of softening demand and declining prices is taking hold in others. This update will delve into the details, exploring price movements and potential implications across key steel-producing and consuming regions.
Japan's export scrap prices have fallen for two straight weeks, reaching JPY 41,700/t ($263/t) FOB Tokyo Bay as of January 10, a decrease of JPY 400/t ($3/t) from the prior week. This drop indicates a weaker market outlook and competitive pricing from competitors. Meanwhile, the average domestic scrap prices across three regions remained largely stable at JPY 37,900/t ($240/t) week on week.
China's domestic HRC prices continued their downward trend, decreasing by Yuan 100/t ($14/t) from the previous week to reach Yuan 3,270/t ($446/t) on January 11. This drop is linked to a decline in SHFE HRC futures prices and reduced demand for finished steel in the domestic market. Export HRC prices also fell, decreasing by $10/t to $465/t. Additionally, prices for iron ore, billet, and rebar saw reductions. With trading activity expected to be limited due to the upcoming Lunar Holiday, steel prices are anticipated to remain under pressure in the short term.
The domestic market in Vietnam has been quiet recently. Import HRC (SAE1006) from China was reported at $515/t to $520/t. Meanwhile, domestic HRC remains at $520/t to $525/t for March delivery after a $10/t reduction last month. At the same time, import scrap prices are steady at $365/t CFR main ports.
Throughout the week, HRC prices in Europe remained largely unchanged. In Northern Europe, there was a minor rise in HRC prices by EUR 1/t ($1/t), bringing them to EUR 566/t ($588/t) as of January 09. Conversely, in Southern Europe, HRC prices stayed nearly the same, at EUR 563/t ($586/t) during this period. With demand showing no signs of picking up and inventory levels remaining high, trading activities continue to be sluggish.
HRC prices in the US fell after experiencing an increase the previous week, dropping to $704/t on January 11, a reduction of $14/t over the week. In contrast, import rebar and wire rod prices remained stable despite limited trading activity. Similarly, US domestic rebar prices remained unchanged in the second week of 2025. Meanwhile, US flat steel prices held steady but are anticipated to rise in the near future.
In Mexico, domestic scrap prices dropped by $5/t from the previous week, now standing at $301/t. In contrast, Brazil's export HRC price held steady at $800/t over the same timeframe as two weeks ago. Likewise, export slab prices remained largely unchanged week on week, recorded at $530/t.
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