We trust you are well. We would like to inform you lasted steel market move of our study on this week for each area.
We forecast the shortage of steel supply and rising price of HRC will continue in the 2nd quarter of this year because the demand is remain strong and the cost for steel production is higher.
Japan & Asia
Japan – Osaka Steel kept its list price of steel sections for domestic sales in April unchanged. The company has increased its price total US$147/yon from October 2020 to January 2021. Meanwhile, steel scrap H2 grade in Japanese domestic market as well as for export to overseas fells its price by US$9/ton on week ended March 26, the price was transacted at JPY37,000/ton (US$333/ton).
Asia – Demand from construction sector in China is growing, so the sales of construction steel products rebound and lead to the drop of inventory of major steel finished products such as rebar and wire rod by 3%. The price of rebar in China increased by US$12.5/ton on one week to US$740/ton on March 26 while the billet price surged to US$710/ton, the highest range in 12 years.
Europe
Europe –ArcelorMittal Europe has increased the offer price of HRC for the third time in March. The new price of HRC is offered at EUR900/ton (US$1,062/ton) EXW on March 26, an increase of EUR50/ton compared to the previous price. The continuity uptrend of coil in Europe is supported by shortage of supply, recovery of demand, and lack of import competition.
America
North America – US Steel mills production reduced 0.5% on one week from 1.762 million ton to 1.753 million ton on March 20 with the capacity utilization rate at 76.8%, down by 2.8% at the same period of last year 2020. The price of HRC in the US market has surpassed all-time record high at US$1,320/ short ton (US$1,452/ton) on March 24 and it is expected to grow again.
Central & South America – With the growing demand for steel product, Brazilian steel makers increased the rolled steel production in the first quarter to 1.11 million ton, up by 18.8% compared to the first quarter of 2020. Steel slab production in the first quarter also increased 1.6% from the same period of last year. The price of HRC has been increased about 25% in the first quarter and major steel makers like CSN and USIMAS are aimed to up its price again soon due to high material cost and lack of steel import.
