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 remained mostly unchanged from the previous week, standing at JPY 43,400/t ($277/t) FOB Tokyo Bay as of December 20. A slight decrease in prices is anticipated due to weak demand from key international markets. Domestic scrap prices dropped by JPY 500/t ($3/t) in Tahara and Utsunomiya, while staying relatively stable in other regions, with the average price across three areas at JPY 40,500/t ($258/t).
China
Domestic HRC prices in China fell by Yuan 60/t ($8/t) from the previous week, reaching Yuan 3,410/t ($467/t) on Dec. 21, influenced by a decline in SHFE HRC futures prices. Meanwhile, export HRC prices remained stable at $495/t. The construction demand in China is expected to weaken due to the seasonal slowdown, causing domestic rebar prices to decrease by Yuan 60/t ($8/t), settling at Yuan 3,310/t ($454/t).
Vietnam
In Vietnam, domestic scrap prices fell to $327/t as a result of weak demand. Domestic HRC prices stayed consistent at $516-522/t (SAE1006, skin-pass) CIF Ho Chi Minh City for February delivery. The construction sector and real estate market are still encountering major challenges, leading to consistently low demand in the domestic flat steel market.
Europe
In Northern Europe, HRC prices stayed steady at EUR 562/t ($590/t) on Dec. 20, unchanged from the previous week. Meanwhile, in Southern Europe, HRC prices fell by EUR 6/t ($6/t) to EUR 555/t ($583/t). Import HRC prices were recorded at $530/t CIF Antwerp. The prices have not increased due to weak demand amid seasonal shutdowns.
America
In the US, HRC prices increased slightly by $4/t from the previous week, reaching $679/t on Dec. 21. Similarly, domestic flat steel prices are on an upward trend before the holiday. Domestic rebar prices in the US are also at higher levels. Meanwhile, wire rod prices remained unchanged throughout the week due to limited trading. US scrap prices are expected to remain stable in January 2025.
Domestic scrap prices in Mexico remained unchanged from the previous week, standing at $306/t. Similarly, export rebar prices in Brazil held steady at $890/t CFR main ports for four weeks in a row. In contrast, export slab prices in Brazil fell week over week, reaching $535/t, a drop of $5/t from the prior week.
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