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.
Compared to the previous week, export scrap prices in Japan experienced a slight rise of JPY 100/t ($0.66/t) this week, reaching JPY 41,500/t ($276/t) FOB Tokyo Bay as of February 21. This increase was influenced by factors like exchange rates, sea freight costs, and supply shortages. Additionally, the average domestic scrap prices across three regions rose by JPY 300/t ($2/t), amounting to JPY 40,800/t ($271/t). Domestic demand remains stable.
As of February 22, the price of domestic HRC in China was Yuan 3,400/t ($467/t), reflecting a week-on-week rise of Yuan 50/t ($7/t) from the previous week, consistent with the upward movement in SHFE prices, despite limited demand. In contrast, export HRC prices stayed mostly stable at $470/t. The demand from import markets remains uncertain due to the impact of anti-dumping duties.
In Vietnam, the government has announced that anti-dumping duties on HRC imported from China will be implemented starting in early March 2025. These duties will vary between 19.38% and 27.83%. In 2024, China accounted for 18.63 million tonnes of HRC imports, making up the largest portion of Vietnam's total import volumes from international markets. This week, domestic HRC prices in Vietnam have remained mostly stable, fluctuating between $494 and $506 per tonne. There is a slight uptick in domestic construction activities.
In Northern Europe, HRC prices increased by EUR 16/t ($17/t) from the previous week, reaching EUR 619/t ($647/t) on February 21. Likewise, in Southern Europe, HRC prices climbed by EUR 16/t ($17/t) to EUR 610/t ($637/t) over the week. These price hikes were driven by limited import activities and restocking efforts. Participants are keen to gain insights into the new safeguard measures expected by the end of the week.
HRC prices in the US, starting at a reference point of $779/t, increased by $11/t from the previous week. US flat prices are climbing as well, driven by unpredictable tariffs and rising scrap costs. Import rebar and wire rod prices have begun to trend upward after a prolonged period of stability, mirroring the same pattern seen in domestic rebar and wire rod prices.
Export HRC prices in Brazil rose by $20/t, reaching $820/t, after being stable for nearly two months. In contrast, export rebar prices in Brazil have largely held steady over the last four weeks at $870/t. During the week, high-grade iron ore prices (65% Fe) in Brazil saw a slight decrease of $1/t, settling at $120/t CFR main ports.
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.