2024.05.16

Dipped Domestic Price of HRC in Mexico, 16th May 2024

Market Trend 2

The steel industry is a constantly evolving landscape, shaped by a multitude of factors that span across continents and industries. From the bustling markets of Asia to the industrial powerhouses of Europe, the dynamics of the steel market are in a constant state of flux. In this article, we delve deeper into the recent developments and trends in the global steel industry, shedding light on the stability of pricing, the forces that drive the market, and the delicate balance of supply and demand.

China 

Chinese domestic Hot Rolled Coils (HRC) prices have remained steady at Yuan 3,810/t ($527/t) compared to two weeks ago, despite a slight decrease in SHFE futures prices by Yuan 21/t ($3/t). On the other hand, the export HRC price in China has seen a rise to $545/t, increasing by $5/t. While the export market shows promise, the domestic real estate sector is experiencing subdued demand.

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Japan 

Export scrap prices in Japan remained relatively stable this week, standing at JPY 51,700/t ($332/t) FOB on May 10 compared to the previous week. Despite a slowdown in trading activities, major steel manufacturers have announced an increase of JPY 1,000/t ($6/t) for ferrous scrap. The average price across three regions now stands at JPY 51,5000/t ($330/t).

Market Trend 3

Europe

The price of HRC in Northern Europe showed an upward trend this week, reaching EUR 641/t ($685/t) on May 7, marking a rise of EUR 9/t ($10/t). Similarly, the HRC price in Southern Europe also saw an increase of EUR 12/t ($13/t), standing at EUR 639/t ($683/t). With demand remaining limited and not expected to improve in the near future due to the upcoming summer holiday in the EU.

America 

Domestic HRC prices in the US have remained steady compared to one week ago, reported at $740/MT- $800/MT ex-works at Midwest mills. However, there has been a decrease in the US ferrous scrap price by $10/lt, leading to the shredded scrap price in the Midwest and Southeast at $395/lt ($388/MT) delivered to mills on May 09, as sentiment towards finished products weakens.

The domestic price of HRC in Mexico has dipped to around $900/MT, experiencing a week-over-week decrease of $26/MT. In contrast, the domestic scrap price in Mexico has shown stability, holding at $354/MT during the same period. Additionally, the export slab price in Brazil remains unchanged at $615/MT FOB at the main ports compared to the previous week.

Market Trend 7

Viet Nam

In the tranquil market of Vietnam, the domestic HRC prices have remained stable, ranging from $630/t to $650/t. The 5% increase in the VND/USD exchange rate from January to May has presented challenges for traders importing HRC from overseas. While our EAF customers are operating at a reduced capacity of 30-40%, Induction Furnace customers are faring better with a capacity of 60-70%.

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Dipped Domestic Price of HRC in Mexico, 16th May 2024