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.
Export scrap prices in Japan fell by JPY 800/t ($6/t), bringing the prices down to JPY 42,000/t ($295/t) FOB Tokyo Bay from JPY 42,800/t ($299/t) the week before. The decline is attributed to weak demand and uncertain tariff policies. Buyers are remaining cautious, closely monitoring the price trend. Furthermore, average domestic scrap prices across three regions were revised downward by JPY 500/t ($4/t), now standing at JPY 41,300/t ($290/t).
By April 19, domestic HRC prices in China were recorded at Yuan 3,220/t ($441/t), reflecting a reduction of Yuan 30/t ($4/t) from the prior week, driven by a decline in SHFE futures. Likewise, domestic rebar prices dropped by Yuan 20/t ($3/t), now standing at Yuan 3,210/t ($440/t) compared to the previous week. The domestic market remains uncertain due to limited demand. At the same time, export HRC prices fell by $10/t during the week, reaching $455/t.
In Vietnam, the import price for HRC from China dropped to $485/t (SAE1006) CFR main ports for June delivery. The market remained similarly subdued due to insufficient demand. Although there was more activity this week, import scrap prices decreased by $2/t to $10/t, now ranging from $330/t to $350/t CFR main ports. With inventory levels being average, buyers are proceeding with greater caution.
HRC prices in the EU market showed little change amid a subdued market environment. In Northern Europe, HRC prices saw a minor decrease of EUR 1/t ($1/t), reaching EUR 654/t ($740/t) as of April 16. In contrast, Southern Europe experienced a slight increase in HRC prices by EUR 1/t ($1/t), bringing them to EUR 632/t ($714/t). The market continues to face weak demand from end-users. Meanwhile, import HRC prices fluctuated between $630/t and $667/t, with trading activity remaining limited.
Brazil's export HRC prices have dropped by $10/t from two weeks ago, now at $800/t. In contrast, slab export prices have stayed steady over the past week at $490/t FOB. The export rebar price has been consistent for the past three weeks at $890/t CFR main ports. Meanwhile, high-grade iron ore prices in Brazil have seen a slight rise of $2/t, now at $110/t.
Brazil's export HRC prices have dropped by $10/t from two weeks ago, now at $800/t. In contrast, slab export prices have stayed steady over the past week at $490/t FOB. The export rebar price has been consistent for the past three weeks at $890/t CFR main ports. Meanwhile, high-grade iron ore prices in Brazil have seen a slight rise of $2/t, now at $110/t.
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