The global steel landscape presents a tale of contrasting fortunes this week, with regional markets displaying divergent trends that reflect underlying economic pressures and policy interventions. From Japan's inventory challenges to China's government-backed recovery, here's our comprehensive analysis of the latest developments.
Japan
Export scrap prices in Japan maintained stability week-on-week at JPY 42,000 per tonne ($283/t) FOB Tokyo Bay as of August 29, driven by sustained demand from core overseas buyers. Meanwhile, domestic scrap values extended their downward movement, falling by JPY 500/t ($3/t) in markets including Kansai, Okayama, and Takamatsu, and settling between JPY 37,000/t and JPY 39,000/t ($249/t–$263/t).
China
Domestic hot-rolled coil (HRC) prices in China held steady week-on-week, recorded at Yuan 3,220/t ($459/t) as of August 30, despite upward momentum in SHFE futures throughout the week. Conversely, export HRC prices softened by $5/t, offered at $480/t. Domestic rebar and billet values also declined over the week, reflecting subdued construction demand amid persistently high inventory levels.
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Vietnam
In Vietnam, import scrap prices for Japanese material reached $324/t, reflecting a $6/t rise week-on-week. Trading activity remained limited due to holiday factors, while finished steel demand showed only gradual improvement amid a sluggish construction sector. However, market stakeholders expect an acceleration in demand as the market enters September and October.
Europe
As of September 2, domestic HRC prices in Northern Europe rose by EUR 5/t ($6/t) week-on-week to EUR 579/t ($676/t). Southern Europe followed with a moderate increase of EUR 3/t ($4/t), settling at EUR 544/t ($635/t). Market demand remains depressed in the wake of the summer holiday, though buyers expect price stabilization and potential upward movement in early 2026 due to tightening import supply.
America
Hot-rolled coil (HRC) prices in the U.S. declined sharply by $36/t over the past week, reaching $796/t, amid persistent weakness in demand for flat products. Scrap prices also remained at lower levels. In contrast, domestic rebar and wire rod prices have held steady for five consecutive weeks, while prices for imported rebar and wire rod continued to rise due to ongoing supply constraints.
Export prices for hot-rolled coil (HRC) in Brazil declined by $10/t over the past two weeks, now assessed at $750/t. Slab export prices remained relatively stable for the sixth consecutive week, fixed at $470/t FOB main ports. Meanwhile, high-grade iron ore (65% Fe content) eased by $1/t week-on-week, recorded at $119/t CFR main ports.
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