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.
This week, Japan's export scrap prices dropped by JPY 500/t ($3/t), settling at JPY 42,500/t ($283/t) FOB Tokyo Bay as of December 6. The decline is attributed to the uncertain global market and elevated ocean freight costs. In contrast, domestic average scrap prices across three regions held steady from the previous week, at JPY 38,200/t ($255/t).
On December 7, the price of domestic HRC in China was Yuan 3,460/t ($476/t), reflecting a minor decline of Yuan 10/t ($1/t) from the previous week, attributed to a decrease in SHFE HRC futures prices and weak demand for finished steel. Likewise, export HRC prices dropped by $20/t over the week, settling at $490/t, with trading activities remaining limited during this period.
In Vietnam, construction activities were declining. The market is also facing financial challenges, resulting in limited trading. The steel market in Vietnam is influenced by the uncertain global market. Import HRC from China remained relatively stable during this period, priced at $505/t - $510/t CFR main ports. Meanwhile, domestic HRC was at $525/t. Demand remained sluggish.
In Northern Europe, HRC prices were recorded at EUR 564/t ($595/t) on Dec. 06, showing a modest rise of EUR 4/t ($4/t) from the previous week. Similarly, in Southern Europe, HRC prices experienced a slight increase of EUR 2/t ($2/t) over the week, reaching EUR 560/t ($591/t). Trading activity remained limited, with weak end-user demand and an uncertain outlook for the first quarter of the next year.
In the US, HRC prices decreased by $11/t compared to the previous week, settling at $689/t on Dec. 06. Throughout the week, domestic flat steel prices exhibited mixed trends. Meanwhile, US scrap prices remained largely unchanged in a quiet market. Despite weak demand, domestic rebar and wire rod prices saw a modest increase.
This week, domestic scrap prices in Mexico continued their downward trend, decreasing by $5/t to reach $311/t. Meanwhile, high-grade iron ore (65% Fe) in Brazil increased by $2/t, reaching $120/t. Concurrently, export slab prices in Brazil remained relatively stable at $540/t FOB main ports.
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