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
A major steel maker in Japan has reduced their HRC prices for October delivery by $50/t to $80/t, now listed at $520/t CFR Asia. Export scrap prices in Japan were calculated at JPY 42,000/t ($299/t) FOB Tokyo Bay on September 13, continuing to decrease by JPY 1,500/t ($11/t) compared to the previous week. They have fallen JPY 10,100/t ($72/t) since July this year. Prices are driven by weak demand, high inventory levels, and the appreciation of the Japanese yen against the US dollar. Similarly, domestic scrap prices in Kanto also saw a week-on-week decrease of JPY 1,500/t ($11/t), now at JPY 41,500/t ($294/t).
China
After a decline last week, domestic HRC offers in China saw an increase this week, rising by Yuan 130/t ($18) to reach Yuan 3,180/t ($448/t) on September 14, driven by an uptrend in Shanghai Futures Exchange (SHFE) futures and improved demand. However, export HRC prices fell by $15/t over the same period, settling at $450/t.
Vietnam
In Vietnam, a major steel producer announced adjustments to their HRC prices for October/November delivery. The revised prices are set at $510/t - $515/t CIF main ports (SAE1006, non-skin-passed), reflecting a reduction of $15/t-$17/t. Meanwhile, import HRC prices from China remained stable over the week, standing at $485-$490/t CFR main ports. The domestic market for finished products remains extremely weak.
Europe
HRC prices in Europe remained stagnant in a quiet market. In Northern Europe, HRC prices were at EUR 566/t ($627/t) on Sep. 16, a decrease of EUR 14/t ($20/t) from the previous week. Similarly, HRC prices in Southern Europe also fell by EUR 8/t ($9/t), settling at EUR 570/t ($631/t). The market is characterized by persistently slow demand and bearish expectations among buyers.
America
HRC prices in the US were reported at $698/MT, a slight decrease of $2/MT compared to the previous week. Domestic rebar prices in the US are trending downward due to lower scrap prices and weak demand in the construction sector. Meanwhile, import rebar prices remained largely unchanged in a quiet market. Additionally, flat steel price estimates have turned positive.
In Mexico, domestic scrap prices stood at $405/t, a reduction of $17/t compared to two weeks ago. In August, rebar prices in Mexico dropped by 9% compared to the same period in 2023, and steel producer prices also decreased by 1.8%. Meanwhile, export slab prices in Brazil remained relatively stable over the same period, at $530/MT FOB main ports.
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