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 January 31, export scrap prices in Japan were recorded at JPY 42,000/t ($271/t), FOB Tokyo Bay, marking a slight increase of JPY 400/t ($3/t) from the previous week. In contrast, the average domestic scrap prices across three regions fell by JPY 500/t ($3/t), settling at JPY 40,000/t ($258/t). Trading activity was subdued due to the Lunar New Year holiday.
China
During the extended holiday period, domestic HRC prices in China remained mostly stable in a quiet market, staying at Yuan 3,390/t ($468/t) as of January 25. Conversely, export HRC prices increased by $20/t, reaching $455/t. Similarly, domestic rebar prices saw a slight rise of Yuan 30/t ($4/t), bringing them to Yuan 3,330/t ($460/t). Buyers are generally taking a wait-and-see stance to monitor price trends after the holiday.
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Vietnam
In Vietnam, the market saw low demand during the holiday, mirroring the global trend. Domestic HRC prices held firm at $515/t (SAE1006, skin-passed) CIF HCM port. Likewise, imported HRC (SAE1006) from China remained unchanged, reported at $475/t - $480/t. The construction and manufacturing sectors experienced reduced activity during this time. Buyers are waiting and watching market trends after the holiday.
Europe
In Northern Europe, HRC prices climbed by EUR 16/t ($17/t) over the last week, reaching EUR 589/t ($614/t) as of January 28. Likewise, in Southern Europe, HRC prices increased to EUR 588/t ($612/t), with a weekly rise of EUR 19/t ($20/t). Trading activity remained sluggish due to ongoing uncertainty in the global market.
America
HRC prices in the US have risen by $64/t compared to two weeks ago, now offered at $754/t. Import rebar and wire rod prices remain stable in a quiet market ahead of new tariffs. Meanwhile, February scrap prices are higher due to supplier shortages, causing domestic rebar and wire rod prices to increase this week.
Export HRC prices in Brazil have remained stable over the past four weeks, offered at $800/t. Meanwhile, export slab prices in Brazil have stayed consistent with the previous week, at $540/t FOB main port. Similarly, high-grade iron ore (65% Fe) has also remained steady during the week, priced at $118/t.
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.
