The steel industry is a dynamic and ever-changing realm, influenced by a multitude of factors that span across continents and industries. From the vibrant and bustling markets of Asia to the industrial powerhouses of Europe, the steel market is in a constant state of flux. In this article, we dive deeper into the recent developments and emerging trends in the global steel industry, shedding light on the stability of pricing, the driving forces behind the market, and the delicate equilibrium of supply and demand.
China
On December 9th, HRC prices in China reached Yuan 4,030/t ($563/t), marking a rise of Yuan 90/t ($13/t) compared to the previous week. This increase can be attributed to the impact of rising raw materials prices and the SHFE futures price, which have led to a higher price trend this week. In contrast, export HRC prices have remained stable at $575/t FOB China. Additionally, rebar prices have also experienced an increase of Yuan 50/t ($7/t), reaching Yuan 3,940/t ($550/t).
Japan
Scrap export prices in Japan saw a notable increase in value, reaching JPY 51,500/t ($356/t) FOB Tokyo Bay on December 8th. This rise of JPY 300/t ($2/t) compared to the previous week can be attributed to the strengthening of the Yen against the US dollar. In addition to this, a major steel mill in Japan has also raised its domestic ferrous scrap purchase price by JPY 500 ($3/t), following a revision that set the price at JPY 50,000/t ($353/t). These developments reflect the evolving dynamics of the steel industry in Japan and highlight the impact of currency fluctuations on pricing.
Europe
In Northern Europe, the domestic price of HRC reached EUR 685/t ($739/t) on December 8th, marking a slight increase of EUR 15/t ($16/t) compared to the previous week. Similarly, in Italy, the price of HRC rose by EUR 5.5/t ($6/t), reaching EUR 665 ($718/t). These price uptrends can be attributed to the reduction in production capacity and the uncompetitive nature of import sources, despite limited demand.
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America
During the past week, there has been a notable upward trend in export scrap prices in the United States. These prices have increased by $16 per ton, reaching a range of $373 to $377 per ton FOB on December 8th. This marks the highest price point since May 2023, primarily driven by the rising prices in the Turkish market. Additionally, HRC prices in the US have surpassed $1,000 per short ton ($1,100 per metric ton), indicating a stable demand from the US market.
On December 5th, the price of high-grade iron ore from Brazil (with 65% iron content) stood at $149 per metric ton CFR China, experiencing a slight increase of $6 per metric ton. Furthermore, automotive production in Brazil witnessed a 1.5% growth in November compared to October, reaching a total of 202,700 units. On the other hand, in Mexico, the domestic scrap price has remained stable throughout the week, maintaining a price of $461 per metric ton.
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