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
The export scrap prices in Japan saw a week-on-week drop, reaching JPY 40,300/t ($282/t) FOB Tokyo Bay on September 27, with a further reduction of JPY 200/t ($1/t) from the previous week, mainly due to a lack of active interest from major markets. Similarly, domestic scrap prices, ranging from JPY 38,500/t to JPY 40,500/t, decreased by JPY 1,000/t ($7/t) over the same period.
China
On September 28, domestic HRC in China was priced at Yuan 3,280/t ($468/t), marking a significant increase of Yuan 110/t ($16/t) from the previous week, driven by heightened demand ahead of the upcoming long holiday. Similarly, export HRC prices rose by $15/t during the week, reaching $475/t. Other raw materials, such as billet, rebar, and iron ore, also saw week-on-week price increases.
Vietnam
In Vietnam, HRC prices remain stable at $501/t - $515/t CIF main ports (SAE1006, non-skin-passed). The domestic market continues to face challenges with weak demand for rebar and wire rods due to stagnant construction activity. A major steelmaker in northern Vietnam is operating at less than 60% capacity, whereas two other major steelmakers in southern Vietnam are performing better, operating at around 80% capacity.
Europe
HRC prices in Europe showed a downward trend this week. In Northern Europe, prices fell to EUR 546/t ($609/t) on September 26, a decrease of EUR 14/t ($22/t) from the previous week. Similarly, in Southern Europe, prices dropped by EUR 17/t ($19/t) to EUR 543/t ($606/t). Participants believe prices are nearing production costs, suggesting they may stabilize soon.
America
In the US, the reference price for HRC rose by $19/MT to $742/MT over the past week. The trend for domestic flat steel prices is upward, but domestic scrap prices remained mostly unchanged or increased slightly due to a dockworkers' strike. Similarly, import rebar prices have been largely stable because of weak demand from the construction sector. Meanwhile, long steel prices in the US have stayed relatively steady amid continued weak demand.
In Mexico, the domestic scrap price surged by $29/t week-on-week, reaching $376/t. Likewise, in Brazil, export slab prices fell by $10/t, now at $530/t FOB main ports. Conversely, the export rebar price in Brazil increased by $20/t after four weeks, now standing at $900/t. Additionally, high-grade iron ore (65% Fe) in Brazil rose by $12/t within a week, now priced at $114/t.
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