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
Japanese export scrap prices continued their downward trend, declining by JPY 100/t ($0.7/t) following a sharper drop of JPY 1,000/t ($7/t) earlier in the week, settling at JPY 40,400/t ($280/t) FOB Tokyo Bay as of July 4. Trading activity in the Asian market remained subdued amid seasonal slowdown. With inventories remaining elevated, the average domestic scrap prices across Nagoya, Okayama, and Kansai also edged down by JPY 500/t ($3/t) to JPY 40,000/t ($278/t).
China
Domestic HRC prices in China recorded a modest increase of Yuan 10/t ($1/t) from the previous week, reaching Yuan 3,080/t ($430/t) on July 5, in alignment with the upward trend observed on SHFE futures. During the same period, export HRC prices remained largely stable in a subdued market at $445/t. Persistent weak demand and rising inventory levels continue to exert downward pressure on the market.
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Vietnam
In Vietnam, leading steel producers announced a reduction of $11/t in HRC prices for August delivery, bringing the revised price to $502/t (SAE1006, non-skin-passed), CIF Ho Chi Minh. This adjustment was primarily driven by a weaker domestic demand outlook. Concurrently, import scrap prices from Japan continued to fall, down $5/t from the previous week to $318/t CFR main ports, reflecting muted demand and seasonal rainfall impact.
Europe
In Northern Europe, HRC prices decreased by EUR 8/t ($9/t) over the week, reaching EUR 558/t ($653/t) as of July 2. Southern Europe also saw a downward adjustment, with HRC prices declining by EUR 6/t ($7/t) to EUR 535/t ($627/t). Market conditions remain under pressure due to subdued summer demand. Import HRC quotations ranged from EUR 475/t to EUR 480/t ($556/t–$562/t), marking the lowest levels observed since 2021.
America
US HRC prices remained generally stable over the week, posting a marginal increase of $2/t to reach $885/t. Scrap prices in the United States also showed broad week-on-week stability. Both domestic and imported rebar and wire rod price levels were largely unchanged amid subdued trading activity. Meanwhile, flat product prices in the US displayed mixed movement, influenced by tariff uncertainty and strengthened domestic production.
Export HRC prices in Brazil remained stable compared to two weeks prior, standing at $770/t. Simultaneously, Brazilian export slab prices registered at $475/t FOB, reflecting a decrease of $7/t over the week. In contrast, high-grade iron ore (65% Fe) exported from Brazil exhibited an upward trajectory, rising by $2/t to $104/t CFR.
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