The world of steel is in a perpetual state of flux, influenced by a multitude of factors that span continents and industries. From Asia to Europe, Japan to Vietnam, and North & South America, the dynamics of the steel market are ever-changing. Here, we take a closer look at recent developments and trends in the global steel industry, shedding light on pricing stability, market forces, and the intricate dance of supply and demand.
China
The stability of Chinese domestic HRC prices at Yuan 3,770/t ($515/t) in the week ending on October 21st is attributed to the impact of future price increases. The HRC future price for the January contract saw a slight increase of Yuan 23/t ($3/t) on October 20th, which helped maintain stability in spot prices. Additionally, the export HRC offers remained steady at $530/t FOB China port due to sluggish demand in overseas markets.
Japan
A leading EAF steelmaker in Japan has maintained the price for HRC November delivery, as the construction sector struggles with a lack of orders and weak export demand. The HRC price from this company has remained steady at JPY105,000/t ($710/t) for the fourth consecutive month. However, the automotive market's strong demand is serving as a stabilizing factor for the HRC price.
Europe
The European HRC market remains stagnant as prices hit rock bottom. Despite some steel mills attempting to raise their offers by EUR20/t in response to production cuts and limited import offers, the price has not budged due to a combination of weak demand and sluggish trading activity. As of October 19th, the price of HRC stands at EUR605/t ($640/t) at ex-work mills.
America
In the month of August, there was a remarkable surge in the export of ferrous scrap from the United States, skyrocketing by an impressive 58% and reaching a staggering total of 1.41 million tons. Among the various import markets, Turkey emerged as the leading destination for ferrous scrap. Additionally, the export of aluminium scrap also witnessed a positive growth, amounting to 176,569 tons in August, with a moderate increase of 2.9% compared to the previous month. India proved to be the primary market for aluminium scrap, with a remarkable total of 45,210 tons, showcasing a notable growth of 5.4% compared to the previous month.
The export of iron ore from Brazil saw a slight decline of 1% in September, totaling 35.73 million tons compared to the same period last year. The average price for iron ore during this time was $76.30 per ton, FOB main port, slightly lower than the export price of $76.40 per ton at the same time last year. In comparison to August, there was a 5% reduction in export quantities, which amounted to 37.51 million tons.
Viet Nam
A significant steelmaker in Vietnam has recently reduced the price of their HRC December shipment by $15 per ton. This adjustment is a result of poor market demand and the pressure to match the low prices set by their competitors. The new price offered by this company stands at approximately $580 per ton CIF Ho Chi Minh, which still remains higher compared to the HRC imported from China by $20 per ton.
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