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
During the week, export scrap prices in Japan saw an increase of JPY 2,200/t ($14/t), reaching JPY 46,200/t ($304/t) FOB Tokyo Bay on October 25, primarily due to recent deals with the Taiwan market. Similarly, domestic scrap prices also experienced an upward trend, with average prices rising to JPY 38,000/t ($250/t), an increase of JPY 300/t ($2/t) over the same period.
China
Domestic HRC prices in China increased slightly by Yuan 20/t ($3/t) compared to the previous week, reaching Yuan 3,430/t ($482/t) on October 26, driven by a rise in SHFE futures prices. The domestic demand is expected to recover due to government support measures, such as interest rate cuts. Conversely, export HRC prices experienced a significant drop of $25/t during the week, settling at $505/t, indicating weak global demand.
Vietnam
In Vietnam, steel prices remained volatile, mainly affected by global market trends. The import price of HRC from China saw a minor decline, with offers between 492-510 USD/MT CFR Vietnam for November and December shipments. Nonetheless, numerous experts predict a rebound in steel prices by year-end, driven by rising demand in the construction industry.
Europe
In Northern Europe, HRC prices were EUR 549/t ($593/t) on October 25, but decreased by EUR 4/t ($4/t) compared to the previous week. Similarly, in Southern Europe, HRC prices fell by EUR 5/t ($5/t), now standing at EUR 546/t ($589/t). European steel mills are facing rising production costs and may reduce production capacity in November and December to balance supply and demand.
America
HRC in the US was assessed at $704/MT, a slight decrease of $1/MT from the previous week. In November, US scrap prices increased by $30/t due to improved inventory levels. Domestic flat steel prices continue to exhibit a mixed trend this week, with demand remaining weak. On the other hand, domestic rebar prices have decreased, while wire rod prices have shown an upward trend.
High-grade iron ore (65% Fe) in Brazil remained at $115/t, showing stability week over week. Similarly, the export slab price in Brazil was steady at $535/t FOB main ports throughout the week. Meanwhile, export rebar prices in Brazil, with a reference price of $925/t, increased by $25/t compared to four weeks ago.
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