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
Export scrap prices in Japan have remained steady compared to the previous week, at JPY 45,000/t ($291/t), FOB Tokyo Bay as of Nov. 22, despite ongoing sluggish demand and rising freight costs. Likewise, domestic average scrap prices across three regions have stayed at the same level for two consecutive weeks, recorded at JPY 38,100/t ($245/t).
China
On November 23, domestic HRC in China was priced at Yuan 3,440/t ($475/t), unchanged from the previous week, even though SHFE HRC futures showed an upward trend during the week. Conversely, export HRC prices decreased by $10/t from the previous week, settling at $485/t due to competitive pricing from other countries. Domestic production capacity is expected to be adjusted in the coming week due to the winter season.
Vietnam
In Vietnam, the import price for HRC from China ranged between $510/t and $515/t CFR main port, remaining largely stable from the previous week. Overall, the market stayed quiet, indicating a slowdown in the construction and manufacturing sectors. However, our primary customer in Central Vietnam is set to begin operating a new furnace in December, leading to a significant increase in actual demand from this steel mill.
Europe
In Northern Europe, HRC prices were reported at EUR 563/t ($594/t) on November 20, marking a slight increase of EUR 5/t ($5/t) compared to the previous week. Similarly, in Southern Europe, HRC prices rose by EUR 5/t ($5/t) during the week, reaching EUR 557/t ($588/t). Trading activity remained limited due to subdued demand, particularly in the automotive industry.
America
HRC prices in the US saw a week-on-week decline, reaching $676/t, a drop of $10/t from the previous week. US scrap prices are expected to remain stable in December following a recent upward trend in November. The domestic rebar price in the US experienced a slight increase, while the wire rod price remained steady throughout the week. Additionally, the import long steel market is witnessing increased trading activity ahead of the upcoming holiday.
Export rebar prices in Brazil, with a reference price of $890/t CFR main ports, decreased by $35/t compared to four weeks earlier. Meanwhile, domestic scrap prices in Mexico remained stable during the week at $333/t. Similarly, export slab prices in Brazil showed relative stability over the same period, at $530/t FOB main ports.
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