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 hot-rolled coil (HRC) in China saw a $14/t decrease this week, dropping to $521/t from last week's $535/t, in line with the downward trend in SHFE HRC futures. This decline can be attributed to sluggish domestic demand and heightened production levels. Furthermore, SHFE HRC futures for the May contract also experienced a decrease of $20/t week-on-week, settling at $514/t on March 15th compared to $534/t the previous week.
Japan
Export scrap prices in Japan, specifically at JPY 45,700/t ($322/t) FOB Tokyo Bay on Mar.15, saw a decrease of JPY 2,840/t ($20/t) compared to the previous week. This decline can be attributed to a downtrend in global scrap prices and a notable lack of demand from overseas markets, which ultimately led to the decrease in prices for the week.
Europe
European HRC prices remained relatively stable amidst limited trading activity, reflecting subdued downstream demand and cautious outlooks from buyers.
Steel producers in Northern Europe aimed to maintain offers within the range of ($766-798)/ton ex-works, while buyers expressed their price expectations in the range of ($741-$763)/ton ex-works.
Meanwhile, in Southern Europe, HRC ex-works prices from Italy were reported at $735/ton, showing a slight decrease of $2/ton from the previous pricing.
America
According to the latest report from the American Iron Steel Institute (AISI), domestic raw steel production decreased by 1.2% compared to the previous week, with production totaling 1,718,000 tons in the week ending March 16th. The capacity utilization rate stood at 76.9%. Year-to-date production through March 16, 2024, shows a capacity utilization rate of 75.9%, down by 3.1% compared to the same period last year.
Today, the spot market experienced a correction to the downside, with HRC coil prices decreasing by approximately $5. The import market for coil is now at 750 US dollars per ton. The steel market here continues to be influenced by the stagnation in the Chinese real estate market.
Viet Nam
FHS has announced a reduction of $11 per ton for May shipment coils, aiming for a price of $620 per ton CFR HCM. Additionally, the price of domestic billet in Vietnam has seen a significant decrease of $24 per ton this week. Despite this, the price of local induction furnace billet has dropped to $490 per ton but continues to face challenges in sales.
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