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
On March 7, export scrap prices in Japan were recorded at JPY 41,700/t ($283/t), FOB Tokyo Bay, marking an increase of JPY 200/t ($1.3/t). This rise was primarily fueled by increased demand from major international markets and limited supply. Meanwhile, the average domestic scrap prices across three regions remained unchanged from the previous week, at JPY 40,800/t ($271/t).
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China
Following the downward trend in SHFE prices, domestic HRC prices experienced a slight drop of Yuan 20/t ($3/t) from the previous week, settling at Yuan 3,340/t ($462/t) on March 8. Simultaneously, export HRC prices also fell short this week, declining by $5/t to $470/t. This price reduction is due to weaker demand in the construction sector and uncertainty regarding tariffs. In contrast, domestic rebar prices remained stable at Yuan 3,330/t ($460/t).
Vietnam
In Vietnam, import scrap prices have recently risen, ranging from $315 to $320 per ton CFR main ports. This increase was prompted by a slight uptick in the construction sector this week. Meanwhile, domestic HRC prices in Vietnam have remained relatively stable during the same period, between $494 and $506 per ton. The aluminum and steel industries are undergoing significant market adjustments to accommodate a 25 percent tariff on all imports to the US market.
Europe
On March 7, HRC prices in Northern Europe were recorded at EUR 631/t ($681/t), reflecting a modest increase of EUR 5/t ($5/t) compared to the previous week. This uptick is due to a constrained supply amid low market activity. Likewise, HRC prices in Southern Europe climbed by EUR 10/t ($11/t), reaching EUR 620/t ($669/t). Market participants are cautiously awaiting the new HRC quota.
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America
HRC prices in the US have increased by $12/t compared to the previous week, now standing at $927/t. Import rebar and wire rod prices have seen a notable rise following the introduction of import tariffs. Additionally, US flat prices have continued their upward trend recently due to the postponed Mexico-Canada tariff. Consequently, scrap prices in the US are anticipated to decrease soon.
Over the last two weeks, export HRC prices in Brazil have remained fairly consistent, staying at $820/t. Likewise, export slab prices in Brazil have shown minimal change from the previous week, maintaining a level of $505/t. Conversely, high-grade iron ore prices (65% Fe) in Brazil saw a slight drop of $5/t during the week, now priced at $115/t CFR main ports.
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.
