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
The export scrap prices in Japan saw a slight uptick, reaching a reference price of JPY 50,500/t ($315/t) FOB Tokyo on Jun. 28. This increase of JPY 300/t ($2/t) from the previous week was influenced by the depreciation of the JPY against the US dollar. Additionally, the average domestic scrap price across 04 regions in Japan rose to around JPY 51,625/t ($323/t), marking an increase of JPY 625/t ($4/t). Despite these price movements, demand in both markets continues to remain subdued.
China
The price of domestic HRC in China on Jun. 29 was at Yuan 3,690/t ($508/t), reflecting a decrease of Yuan 40/t ($5/t) compared to the previous week. This decline was influenced by the SHFE futures price, which exhibited a downward trend this week, dropping by Yuan 35/t ($5/t). Similarly, the export price of HRC in China was recorded at $515/t, showing a week-on-week decrease of $5/t. These price adjustments can be attributed to softening demand and a decline in construction activities in the region.
Vietnam
In Vietnam, the imported Hot Rolled Coils (HRC) from China were priced at $540-$545 per ton CFR at the HCM port, showing a decrease of $5 per ton compared to the previous week. On the other hand, the domestic HRC price stood at $580 per ton CFR at the HCM port, maintaining stability for the week. Despite this, there is a noticeable lack of demand in the finished steel sector, with construction activities remaining relatively quiet.
Europe
In Europe, the trend of declining HRC prices persisted this week, amidst sluggish downstream sales. In Northern Europe, HRC prices stood at EUR 630/t ($672/t) on Jul. 01, showing a slight decrease of EUR 1/t ($1/t) compared to the previous week. Meanwhile, in Southern Europe, HRC prices saw a slight reduction of EUR 4/t ($4/t), reported at EUR 625/t ($674/t). With the upcoming summer holidays expected to bring longer shutdowns, the market anticipates further adjustments in the steel sector.
America
US domestic prices for HRC saw a significant week-on-week decline, dropping to $732/MT ex-works at Midwest mills, a staggering decrease of $62/MT. Import and domestic rebar prices in the US remained relatively stable. Meanwhile, the price of flat steel continued its downward trend, reflecting a slowdown in the construction and manufacturing sectors.
Export slab prices in Brazil were recorded at $550/MT FOB main ports, marking a significant decrease of $30/MT within a week. Meanwhile, domestic scrap prices in Mexico remained relatively stable during the same period, hovering around $404/MT. Conversely, high-grade iron ore prices in Brazil saw a week-on-week increase, reaching $123/MT CFR main ports, showing a rise of $5/MT in the current week.
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