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
Export scrap prices in Japan saw a significant increase over the week, rising by JPY 4,600/t ($31/t) to reach JPY 45,600/t ($306/t) FOB Tokyo Bay on October 11. This rise reflects an increase in Kanto tender prices and heightened domestic demand. Additionally, domestic scrap prices also went up after multiple reductions, with average prices standing at JPY 40,600/t ($297/t), a surge of JPY 3,000/t ($22/t).
China
In China, SHFE rebar futures prices dropped to Yuan 3,468/t ($491/t), a decrease of Yuan 18/t ($3/t). Similarly, billet prices fell by Yuan 110/t ($16/t), settling at Yuan 3,200/t ($453/t). HRC futures prices in China also saw a $14/t decline over the week, calculated at $511/t. Steel mills are experiencing low inventory levels, and the market is anticipating government policies to support the steel industry.
Vietnam
In Vietnam, a leading steel manufacturer announced a $35/t increase in HRC (SAE1006, non-skinpassed) prices for December delivery. The revised price is now set at $550/t CIF Ho Chi Minh City. Conversely, HRC (SAE1006, skinpassed) prices from another supplier were reported at $545-555/t. The rise in import HRC prices from China has supported the domestic prices this week.
Europe
In Northern Europe, HRC prices reached EUR 546/t ($600/t) on October 11, marking an increase of EUR 8/t ($9/t) compared to the previous week. Meanwhile, the HRC price in Southern Europe stayed consistent with the prior week at EUR 540/t ($593/t). Simultaneously, the import price of HRC from Asia was EUR 555/t CFR ($610/t), as demand remained limited.
America
HRC prices in the US were reported at $705/MT, reflecting a slight decrease of $3/t from the previous week. Scrap prices in the US saw a week-on-week increase driven by strong demand from the overseas market. Domestic flat steel prices exhibited a mixed trend this week, influenced by the upward movement in scrap prices. Meanwhile, the import rebar prices remained stable throughout the week due to subdued demand from the domestic wire rod sector.
Domestic scrap prices in Mexico remained broadly stable week-on-week, calculated at $376/t. Similarly, export scrap prices in Brazil stayed at the same level as last week, recorded at $530/t FOB main ports. In the same vein, high-grade iron ore (65% Fe) in Brazil was steady at $117/t throughout the week.
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