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 saw a slight decrease of JPY 100/t ($0.46/t) from the previous week, reaching JPY 41,600/t ($267/t) FOB Tokyo Bay on January 17, due to weak demand and limited trading activity. Additionally, the average domestic scrap prices across three regions remained stable at JPY 37,900/t ($243/t) compared to the previous week.
This week, domestic HRC prices in China experienced a significant increase, rising by Yuan 120/t ($16/t) from the previous week to reach Yuan 3,390/t ($463/t) on January 18. This was primarily driven by the upward movement in SHFE HRC futures prices, which heightened demand for finished steel. Additionally, prices were bolstered by buyers stocking up ahead of the forthcoming long holiday. In contrast, export HRC prices fell by $10/t, settling at $455/t.
In Vietnam, a major steel producer decided to lower their HRC price for February delivery. The revised price is $515/t (SAE1006, skin-passed) CIF HCM port, reflecting a $5/t drop. The market remained equally quiet and is expected to decline further during the upcoming holiday week. Likewise, the import HRC (SAE1006) from China saw a $10/t decrease from the previous week, with prices now between $475/t and $480/t.
Throughout the week, HRC prices in Europe saw an upward trend. In Northern Europe, prices increased by EUR 7/t ($7/t), reaching EUR 573/t ($587/t) as of January 16. Similarly, in Southern Europe, prices climbed by EUR 7/t ($7/t) to EUR 570/t ($584/t) during the same period, despite sluggish downstream sales. Buyers may be monitoring these trends to make more informed decisions.
HRC prices in the US, initially at $690/t, experienced an additional decline of $14/t compared to the previous week. US flat steel prices remained consistent from one week to the next. US scrap prices exhibited minimal variation. Meanwhile, import rebar and wire rod prices stayed largely unchanged, with minor increases attributed to the rising domestic market prices.
Brazil's export rebar prices have dropped by $20/t, now at $870/t CFR main ports compared to four weeks prior. In contrast, high-grade iron ore (65% Fe) has increased by $3/t from the previous week, now at $118/t. Likewise, export slab prices have risen by $5/t over the week, reaching $535/t FOB main port.
Export rebar price in Brazil offers $20/t decrease, at $870/t CFR main ports against four weeks ago. At the same time, high grade iron ore (65% Fe) edge up $ 3/t compared earlier week, presented at $118/t. The same, export slab prices also upturn $5/t on week, performed at $535/t FOB main port.