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.
Due to weak demand from overseas markets and pressure from billet prices, Japan's export scrap prices decreased by JPY 800/t ($5/t) compared to the previous week, calculated at JPY 43,500/t ($298/t) FOB Tokyo Bay on April 4. In contrast, average domestic scrap prices in three regions increased by JPY 500/t ($3/t), reaching JPY 42,500/t ($289/t).
Domestic HRC prices in China remained stable compared to the previous week, holding at Yuan 3,330/t ($458/t) on March 29. Meanwhile, export HRC prices saw a slight increase of $5/t, reaching $470/t. This was supported by rising demand in the domestic market. Despite limited trading activities due to weather conditions, domestic rebar prices still experienced a modest rise of Yuan 30/t ($4/t), reaching Yuan 3,320/t ($457/t).
In Vietnam, import scrap prices decreased by $5/t from the previous week, reported at $330-340/t CFR Vietnam. Average HRC prices in Vietnam also fell by $36/t during the week, reaching $481/t CFR. Prices are under pressure from both domestic and global market demand. The real estate market is slowly recovering, resulting in continued weak demand from the construction sector.
In Northern Europe, HRC prices increased by EUR 7/t ($8/t) compared to the previous week, reaching EUR 652/t ($718/t) on April 4. During the same period, HRC prices in Southern Europe also rose slightly by EUR 4/t ($4/t), standing at EUR 628/t ($691/t). Demand from the automotive sector remains sluggish due to the impact of US tariffs, and the global market outlook is uncertain.
Following a significant drop the previous week, HRC prices in the US have rebounded and are now on the rise, reported at $920/t, an increase of $30/t. Similarly, US flat prices have climbed over the week. During the same period, import rebar prices and wire rods remained stable week-on-week amid limited trading activities. Domestic rebar prices and wire rods also remained unchanged for the week.
Export HRC prices in Brazil stayed relatively unchanged from the previous week, standing at $810/t. Similarly, slab export prices in Brazil remained largely stable throughout the week at $505/t. Conversely, high-grade iron ore prices in Brazil decreased by $3/t, now at $112/t.
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