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
The price of domestic HRC in China has risen to Yuan 3,870/t ($531/t), showing an increase of Yuan 40/t ($5/t) compared to one week ago. Similarly, export HRC prices have also seen a rise of $15/t, reaching $545/t FOB China. These price increases can be attributed to the influence of SHFE HRC futures prices and the reduction of inventory levels. Additionally, domestic rebar prices have increased by Yuan 110/t ($15/t), reaching Yuan 3,890/t ($533/t).
Japan
Export prices for ferrous scrap in Japan took a surprising turn compared to the previous week, experiencing a notable increase of JPY 600/t ($4/t) to reach JPY 48,900/t ($324/t) FOB on November 9th. However, the average ferrous scrap prices in three regions of Japan stood at JPY 47,100/t ($312/t), down by JPY 300/t ($2/t). Despite the domestic market still being stronger than the export market, there are signs of a weakening trend.
Europe
In Northern Europe, European HRC prices have surged to EUR 651/t ($695/t), marking a significant increase of EUR 21/t ($22/t) compared to the previous week. Similarly, in South Europe, prices have risen to EUR 630/t ($672/t), showing a notable increase of EUR 15/t ($16/t). Despite weak demand from end users, the market has become more active due to transactions for January delivery and a reduction in production capacity, resulting in a continuous upward trend in prices.
America
A leading steel manufacturer in the United States has recently announced a significant increase in the price of HRC, reaching $1,000 per metric ton this week. This upward trend is expected to continue in the coming weeks. Additionally, rebar prices are also on the rise due to steady demand from the domestic market. Meanwhile, the price of US steel plates has remained stable at $1,393 per metric ton as of November 8th.
On the other hand, in Brazil, the export prices of slabs at the main ports have increased by $2/t compared to the previous week, reaching $532/t FOB. In addition, heavy plate exports from Brazil have shown a significant rise, reaching 18,900 mt in October, which is a 49% increase compared to September (12,700 mt). The largest destination for these exports is Argentina, with 15,200 mt, followed by Mexico with 3,600 mt and Egypt with 100 mt.
Viet Nam
The prices of imported HRC (SAE1006) from China have seen a $20/t increase, reaching $575-$580/t CFR at the main ports. This rise in prices can be attributed to the impact of domestic HRC in China, despite slow demand in the market. Buyers are showing interest in purchasing domestic HRC at a lower level, priced at $570/t CIF Ho Chi Minh. On the other hand, the domestic rebar price has slightly decreased by $4/t over the week, now standing at $558/t.
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