In the midst of rock-bottom scrap collection volumes in Europe during the holiday season, exporters are facing challenges as they grapple with declining export HRC prices at the FOB China port. This has led them to sell off their inventories and adopt a cautious approach. Meanwhile, in Viet Nam, the domestic market eagerly anticipates the upcoming price announcement from other steelmakers next week.
Let us support and share with you in this blog your business decision during this down-trend market around the world in Aug 2023.
China
The prices of domestic HRC in China experienced a notable decline on August 5th, reaching Yuan 3,980/t ($557/t), down by Yuan 30/t (4/t) compared to the previous week. Similarly, export HRC prices also saw a decrease of $10/t, settling at $575/t FOB China port. Notably, domestic rebar prices dropped from Yuan 130/t ($18/t) to Yuan 3,690/t ($517/t) due to weak demand caused by adverse weather conditions. With an expected increase in supply, the China flat steel market is likely to face mounting pressure. This influx of supply comes at a time when demand is already low, resulting in a softening sentiment within China's steel market.
Japan
On August 4th, Japanese export scrap prices (H2 grade) saw a significant increase, rising by Yen 500/t ($4/t) compared to the previous week. This surge can be attributed to price hikes. Market participants are eagerly awaiting the outcome of the Kanto Tetsugen tender this week, which will provide further insight into the price trend. Additionally, with the upcoming holiday season, trading in the Japanese scrap market is expected to be influenced.
Europe
America
The price of US domestic HRC took a significant dive on August 3rd, reaching its lowest point since January at $860/MT ($782 per short ton). This decline of $82/MT ($75 per short ton) was a result of low booking activity. In addition, domestic rebar prices also experienced a decrease for the second consecutive week, dropping to $957/t ($870 per short ton) due to an increase in imported quantities. Meanwhile, the import HRC price in South America saw a slight increase of $5/t compared to the previous week, settling at $630/t CFR main ports on August 4th. On the other hand, the price for import flat steel remained stable at $670/t throughout the week. Notably, the export price for slabs in Brazil took a significant hit, dropping by $30/t in just one week to reach $670/t.
Viet Nam
Imported HRC from China is currently priced at $580 per metric ton, experiencing a $10 decrease from the previous week. In contrast, a leading steelmaker has increased their prices to $600 per metric ton CIF HCM, with a $20 rise for deliveries scheduled for late September and early October. The domestic market eagerly awaits the price announcement from other steelmakers next week.
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