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
As the price of SHFE Futures falls, domestic HRC prices in China saw a decrease of Yuan 60/t ($8/t) on Feb. 24, settling at Yuan 3,920/t ($545/t). Similarly, export HRC prices dropped slightly to $560/t, down by $5/t for the week. Additionally, the rebar price stood at Yuan 3,850/t ($535/t), experiencing a reduction of Yuan 30/t ($4/t). This downward trend can be attributed to weakening demand and high inventory levels in the market.
Japan
Export scrap prices in Japan remained stable at JPY 52,000/t ($345/t) FOB Tokyo Bay on Feb. 23, showing no change from the previous week. Overseas demand continues to stay subdued, and prices are likely to remain flat in the upcoming weeks as the yen weakens against the US dollar. On the other hand, average domestic scrap prices have seen a slight increase of JPY 300/t ($2/t), reaching JPY 49,000 ($325/t).
Europe
HRC prices in Europe continue to see a downward trend. In Northern Europe, prices dropped to EUR 723/t ($782/t) on Feb. 22, marking a decrease of EUR 15/t ($16/t) from the previous week. Similarly, HRC prices in Italy also experienced a decline, reaching EUR 721/t ($779/t) after dropping by EUR 9/t ($10/t). The market is facing uncertainty with low demand, leading to limited trading activities.
America
The HRC prices in the US stood at $815/MT on Feb. 26, reflecting a decrease of $278/MT since the beginning of the year. In January, steel imports to the US surged by 21.6% compared to December 2023, totaling 2,322,493 MT valued at $2.88 billion. Among the major import sources were Canada with 569,239 MT, followed by Brazil at 488,715 MT, Mexico at 359,304 MT, South Korea at 175,037 MT, and Japan at 104,108 MT.
HRC prices in Brazil have remained relatively stable for four consecutive weeks, holding steady at $900/MT. In contrast, the export price of rebar in Brazil decreased to $860/MT, down by $10/MT compared to the previous week. Additionally, domestic scrap prices in Mexico were reported at $439/MT on Feb. 22, also experiencing a slight decrease during the week.
Viet Nam
A prominent steel mill in Vietnam has recently announced a decrease in the price of HRC (SAE1006, non-skin skin pass) for April delivery, with prices revised to range between $608-$615 CIF Ho Chi Minh. Additionally, imported HRC is priced at $610/t CFR, marking a $10/t reduction from a month ago. The decline in demand both domestically and globally is contributing to the downward trend in prices.
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