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
In Japan, export scrap prices fell sharply within a week, dropping by JPY 1,600/t ($11/t) to JPY 44,000/t ($293/t) FOB Tokyo Bay as of October 18, due to weak demand from overseas markets. Conversely, domestic scrap prices remained relatively stable during this time, at JPY 40,600/t ($270/t).
China
On October 19, domestic HRC in China was priced at Yuan 3,410/t ($480/t), marking a decrease of Yuan 110/t ($15/t) compared to the previous week, due to a drop in SHFE futures prices. In contrast, export HRC prices remained largely stable week-on-week, at $525/t. There are indications that the domestic real estate sector might recover, supported by government measures. However, the overseas market remains uncertain.
Vietnam
In Viet Nam, domestic HRC prices ranged from $545/t to $555/t, remaining largely unchanged over the week. The local steel industry is expected to gain from China's efforts to bolster its real estate market soon. However, domestic steel demand is still lower than anticipated during the construction season. Furthermore, increased competition among factories, including those with imported goods, is adding to the market challenges.
Europe
In Northern Europe, HRC prices reached EUR 553/t ($594/t) on October 21, showing an increase of EUR 7/t ($8/t) from the previous week. Similarly, Southern Europe's HRC prices rose by EUR 11/t ($12/t), reaching EUR 551/t ($592/t). Demand remains stagnant, and trading activities are sluggish, reflecting a decline in the automotive and construction sectors.
America
In the US, HRC was recorded at $705/MT, maintaining relative stability throughout the week. Scrap prices in the US remained mostly unchanged, with supplies still limited. Domestic flat steel prices showed a mixed trend this week due to weak demand. On the other hand, domestic rebar prices may remain stable or see a slight increase due to the upward trend in scrap and wire rod prices.
Domestic scrap prices in Mexico have remained relatively stable from week to week, calculated at $376/t. Meanwhile, Brazil's export slab prices experienced a slight increase of $5/t compared to two weeks ago, reaching a reference price of $535/t FOB main ports. Conversely, high-grade iron ore (65% Fe) in Brazil was reported at $115/t, a decrease of $2/t from the previous week.
If you have any questions about the purchasing process, delivery timelines, or if you're interested in receiving a quote for our lance products, simply click on the link provided and complete the inquiry form. We are dedicated to delivering prompt responses and assisting you with any queries you may have.
