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 held steady week-over-week, assessed at JPY 41,700/t ($272/t) FOB Tokyo Bay as of August 18. Market demand, particularly from the construction sector, remains subdued. Domestic scrap prices also stabilized, maintained within the range of JPY 38,000-40,500/t ($248-264/t).
China
In China, domestic billet prices settled at Yuan 3,050/t ($436/t), reflecting a decrease of Yuan 50/t ($7/t) compared to the previous week. Domestic rebar prices remained stable at Yuan 3,244/t ($463/t) week-on-week. Inventory levels continue to be elevated, impacting procurement activity. Construction demand is projected to hold steady throughout August, while export activity remains limited during the current period.
Vietnam
In Vietnam, a major steel producer announced a $10/t increase in HRC prices for September delivery, with revised offers now ranging from $507-517/t CIF Ho Chi Minh City (SAE1006, skin-passed). This upward adjustment is attributed to higher domestic competitor pricing and the ongoing rise in China’s HRC prices. Demand remained subdued, impacted by seasonal rainfall. Looking ahead, market demand is anticipated to recover, driven by a projected uptick in domestic real estate activity and enhanced by supportive government measures and public investment.
Europe
As of August 14, domestic HRC prices in Northern Europe reached EUR 569/t ($660/t), marking an increase of EUR 9/t ($10/t) from the previous week. Similarly, HRC prices in Southern Europe rose by EUR 9/t ($10/t), recorded at EUR 537/t ($623/t). Activity in the European market remains subdued due to the ongoing summer holiday period, with transactional volumes notably limited.
America
U.S. HRC prices edged down by $2/t, reaching $832/t from $834/t the previous week. The downward trend in U.S. flat steel prices persisted amid subdued demand. In contrast, domestic rebar and wire rod prices remained largely stable, mirroring steady scrap market conditions. Similarly, imported rebar and wire rod continued to be offered at levels consistent with the prior week.
In Brazil, export rebar prices demonstrated consistent stability over the past four weeks, holding at $850/t on a CFR basis. July automotive production increased by 18% month-on-month to 237,800 units, though this represented a 3.6% decline compared to the same period last year. Exports are projected to rise by more than 38% this year, largely supported by robust demand from Argentina.
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