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
On December 23rd, the HRC price in China reached Yuan 3,990/t ($559/t), experiencing a rise of Yuan 30/t ($4/t) compared to the previous week. This increase in price can be attributed to the growing costs of raw materials and the influence of the SHFE futures contract. However, the export HRC prices have remained stable at $575/t FOB China for three consecutive weeks, thanks to the upcoming long holiday.
Japan
Export prices for scrap in Japan, which were at JPY 51,000/t ($358/t) FOB on December 22nd, experienced a decrease of JPY 800/t ($6/t) after six weeks of continuous increases. This decline can be attributed to the falling demand from major overseas markets and the weakened Japanese yen against the USD, both contributing to the downward trend in prices. However, despite this, major steel makers in Japan have maintained a stable price for HRC delivery in January 2024 at JPY 105,000/t ($738/t).
Europe
In Northern Europe, the domestic HRC price continued its upward trend, reaching EUR 695/t ($750/t) on Dec. 22nd. This marked an increase of EUR 8/t ($9/t) compared to the previous week. Similarly, the HRC price in Italy experienced a significant rise of EUR 16/t ($17/t), reaching EUR 688 ($743/t). Despite the holiday season, transactions remained quiet as prices continued to trend upwards throughout the week.
America
In the United States, the HRC price reached $1,126/MT on December 22nd, representing a significant increase of 51% compared to the beginning of 2023. The export of HRC from the US totaled 64,649 MT in October, experiencing a slight decrease of 3.2% compared to September, but a notable increase of 17.8% compared to the same period last year. The total value of these exports amounted to $65.6 million. The primary market for these exports is Mexico, with 42,090 MT in October (compared to 42,825 MT in September and 41,729 MT in October 2022), followed by Canada with 22,245 MT.
HRC consumption in Mexico experienced a significant surge in October, soaring by 27.9% compared to the same period last year, reaching a total of 458,000 MT. On the production side, HRC output also witnessed growth, increasing by 16.6% to reach 352,000 MT. Additionally, international HRC trade saw a remarkable increase of 48.9%, reaching a total of 131,000 MT. Looking at the cumulative data from January to October, HRC consumption showed a substantial rise of 18.6%, soaring from 664,000 MT to an impressive 4.25 million MT.
Viet Nam
In a significant development, a major steelmaker in Vietnam has announced a $30/t increase in HRC prices (SAE1006, non-skinpasses) for March 2024 delivery. As a result of this revision, the new price stands at $600/t CIF HCMC. This positive price change can be attributed to the surge in domestic demand, indicating a promising outlook for the steel industry in Vietnam. Additionally, the domestic rebar price is also on an upward trend, currently priced at $567/t, showing a slight increase of $6/t compared to the previous week.
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