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
Japan's export scrap prices experienced a weekly increase, reaching JPY 43,500/t ($292/t) FOB Tokyo Bay until March 26, up by JPY 400/t ($3/t) from the previous week. This rise is attributed to a higher offer in the Kanto tender and a weaker exchange rate. Despite a decline in domestic demand during the week, the average domestic scrap prices across three regions were set at JPY 42,000/t ($283/t), showing an increase of JPY 1,000/t ($7/t).
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China
During the week, domestic HRC prices in China fell due to seasonal slowdowns and instability in the real estate sector, reaching Yuan 3,330/t ($459/t) on March 22, a decrease of Yuan 20/t ($3/t) from the previous week. In contrast, export HRC prices remained stable at $465/t, unchanged from the prior week. Furthermore, domestic rebar prices saw a minor drop of Yuan 20/t, settling at Yuan 3,290/t ($454/t) compared to the previous week.
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Vietnam
In Vietnam, domestic HRC prices have stayed steady over the past week, fluctuating between $523/t and $535/t. The market remains sluggish, primarily due to the slow rebound of the construction sector, delays in government projects, and postponements in new infrastructure plans. Considering the current market conditions, prices are anticipated to continue varying within a limited range in the near future.
Europe
HRC prices in Europe remained largely unchanged in a subdued market. In Northern Europe, HRC prices were recorded at EUR 638/t ($697/t) on March 20, reflecting a modest rise of EUR 2/t ($2/t) compared to the previous week. Likewise, in Southern Europe, HRC prices increased by EUR 3/t ($3/t), reaching EUR 623/t ($681/t). Import HRC prices were noted to be offered between EUR 550 and EUR 590/t ($603/t - $647/t) amid low activity levels.
America
This week, HRC prices in the US have dropped by about $5/t, bringing them to $934/t. Import and domestic rebar prices, as well as wire rods, have mostly stayed the same. However, US flat prices have been on the rise. Scrap prices are expected to either remain steady or decrease in April after an increase in March.
In Brazil, export HRC prices decreased by $10/t over the past two weeks, settling at $810/t. Likewise, export slab prices fell by $10/t within the same period, now at $495/t FOB main ports. Conversely, export rebar prices in Brazil increased by $20/t compared to four weeks ago, aiming for $890/t CFR main ports. Meanwhile, the price of high-grade iron ore remained steady from the previous week at $115/t, with a minor drop of $1/t during the week.
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.
