We trust you are well. We would like to inform you lasted steel market move of our study on this week for each area.
The demand for steel product in 2021 is estimated to increase about 5% compare to last year, the shortage of supply persist in European and US markets will continues to highly impact to the price of steel worldwide. We forecast the HRC price stay relatively high until the end of this year.
Japan & Asia
Japan - Major steel has raised the prices of its carbon steel flats, included HRC, by JPY10,000/MT ($91/MT) for May shipments, it is about 10% increase from February prices. They has increased its price total US$273/MT from December 2020 to May 2021. Meanwhile, the price of Japanese H2 steel scrap for export market up by $15-20/MT which pushing the domestic scrap price up. The price of rebar in domestic market of Japan is expected to follow suit.
Asia - HRC prices in domestic market of China ware largely stable and stayed at high level of CNY5,550/MT (US$850/MT) over the first two weeks of April. In construction steel sector, Shagang Group has adjusted the list price for long steel products second time in April with US$30/MT up for sales over April 11-20, on top of the first price increase early April with US$15 - US$30/MT due to seasonal strong demand steel in the country. Meanwhile, Indian steel mills have increased the price of domestic HRC offered for April sales by INR4,500/MT ($60/MT) on tight supply and higher price in the international market.
Vietnam
Vietnam - Domestic HRC producer in Vietnam, Formosa offered the new price for HRC with $147/ton up for JUNE shipment following the previous price up $45/MT for MAY shipment. The company sharply increase the price of HRC due to strong domestic demand and higher price of imported HRC from major international steel producers.
On the other hand, the biggest steel producer in Vietnam, Hoa Phat Steel adjust the price of its rebar from April 10 with US$15/MT up. Another key steel player in Vietnam, Hoa Sen Group also increase the price of steel pipe and galvanized steel sheet every week by US$4-US$9/MT in April. Most electric furnace steel mills in Vietnam were running at 50% capacity in the first week of April due to lack of steel scrap as the result of import shipment delay. The price of scrap increased $20/MT for April delivery.
Europe & America
Europe - The price of HRC domestic Europe rose further in the two two weeks of April due to the shortage of material supply. The price was heard deal at EUR901/MT (US$1072/MT) EXW Northern Europe on April 12, up by 14% in one month and increase EUR17/MT week on week. In Southern Europe, the price of HRC was increased with slower pace, up just by EUR7/MT week on week to reach EUR895/MT EXW Italy on April 12.
North America - Price of HRC in the US rose continued to rise to another all-time high at US$1,355/shot ton (US$1,490/MT) FOB mills on April 12, up by 1.65% from a week earlier. This price mark is the highest level since 1,960 but steel mills are aiming of further increase in their next offers when some steel mills plan to stop the furnace operation for maintenance.
Central & South America - The price for rebar in Brazil domestic market was offered by steel mills at R$5,700/MT (US$1,020/MT) on April 09, increase by 15% from a month earlier. Most flat steel makers in Brazil also applied a new round of price increase by 5-10% in the first two weeks of April. The price of HRC reached R$6,220/MT (US$1,095/MT) EXW mills on April 09, increase by 5% from a month earlier, while the price of CRC increased about 10% to reach R$7,300/MT (US$1,285/MT).
