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
In Japan, export scrap prices have decreased by JPY 500/t ($3/t) from the previous week, now standing at JPY 40,400/t ($278/t). The sluggishness in export market activities is attributed to weak domestic demand. Across three major regions, the average domestic scrap prices are JPY 38,300/t ($267/t), reflecting a reduction of JPY 800/t ($6/t) over the past week.
China
As of May 6, billet steel prices in China held steady at Yuan 2,940/t ($404/t) compared to the previous week. This price stability was maintained due to consistent raw material costs and stable exchange rates. Post-holiday, export HRC activities continued to show low booking levels. Despite sluggish trading, domestic spot iron ore prices increased slightly by $1/t, reaching $98/t. With the onset of warmer weather, a modest rise in construction demand is expected.
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Vietnam
In Vietnam, a major steel mill announced a reduction in their selling price for HRC (SAE1006, non-skin-passed) by $8/t for June delivery, bringing the revised price to $513/t. This price adjustment is primarily due to sluggish demand amid weak trading activities. Import scrap prices from Japan remained stable over the week at $325/t CFR main ports. Meanwhile, domestic scrap prices ranged from $304/t to $339/t, also maintaining stability throughout the week.
Europe
In Northern Europe, HRC prices reached EUR 655/t ($739/t) on May 14, reflecting a modest rise of EUR 5/t ($6/t) compared to the previous week. In contrast, Southern Europe saw a decrease in HRC prices by EUR 5/t ($6/t) during the same timeframe, bringing them down to EUR 623/t ($703/t). Overall, the prices remain unboosted due to consistently weak demand, leading to restricted trading activities.
America
HRC prices in the US experienced a gradual decline of $69/t from the previous week, now standing at $875/t. This week, the prices for imported rebar and wire rod in the US have decreased, driven by reduced demand and lower scrap prices. The scrap prices were affected by restricted export activity and an increase in domestic availability. In contrast, US flat prices are being offered at a higher rate due to constrained supply.
Export slab prices in Brazil increased to $510/t FOB, rising by $20/t compared to the previous week. Concurrently, high-grade iron ore prices in Brazil slightly decreased by $1/t, settling at $110/t. Meanwhile, import CRC prices remained broadly stable week over week at $685/t.
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