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
Export scrap prices in Japan have been trending upwards, reaching JPY 41,000/t ($280/t) FOB Tokyo Bay on October 4, marking a JPY 700/t ($5/t) increase from the previous week. This rise primarily reflects the upward trend in China's billet prices, despite limited demand from major overseas markets. In contrast, domestic scrap prices in Japan remain weak due to high inventory levels.
China
In China, the upward trend in raw material costs has led to an increase in billet prices, reaching Yuan 3,310/t ($469/t) on October 8, with a minor rise of Yuan 10/t ($1/t). Meanwhile, SHFE rebar futures prices decreased by Yuan 65/t ($9/t), settling at Yuan 3,486/t ($494/t). Trading activity was notably sparse during the holiday period.
Vietnam
In Viet Nam, a major steelmaker announced an increase in their HRC (SAE1006, skin-pass) prices for December delivery. The revised price is $545-555/t CIF Ho Chi Minh City, marking a $35/t rise. This increase is mainly driven by the import HRC price levels from China and competition within the domestic market. Prices for domestic construction steel have also risen, with rebar prices increasing for the third consecutive time since mid-September, now reaching $551/ton.
Europe
HRC prices in Europe saw a week-on-week decline. In Northern Europe, the prices fell to EUR 538/t ($590/t) on October 8, dropping by EUR 8/t ($9/t) compared to the previous week. Similarly, in Southern Europe, HRC prices decreased by EUR 4/t ($4/t), standing at EUR 540/t ($502/t). Market demand remains low.
America
HRC prices in the US decreased by $34/t from the previous week, now standing at $708/MT. Domestic flat steel prices exhibited a mixed trend this week. Meanwhile, domestic scrap prices remained mostly stable with slight downward movements. In contrast, import rebar price offers rose during the week due to expectations of higher overseas prices.
The HRC price in Brazil reached $840/t, increasing by $40 compared to two weeks earlier. Additionally, high-grade iron ore (65% Fe) in Brazil rose by $3/t, standing at $117/t. Meanwhile, domestic scrap prices in Mexico remained relatively stable during the same period, recorded at $376/t.
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