The world of steel is in a perpetual state of flux, influenced by a multitude of factors that span continents and industries. From Asia to Europe, Japan to Vietnam, and North & South America, the dynamics of the steel market are ever-changing. Here, we take a closer look at recent developments and trends in the global steel industry, shedding light on pricing stability, market forces, and the intricate dance of supply and demand.
China
The price of Chinese domestic HRC has experienced a slight increase, rising by Yuan 10/t ($1/t) on October 28th compared to the previous week. This boost in price can be attributed to the recovery of the stock market, which has positively influenced market sentiment. On the other hand, export HRC prices have decreased by $10/t, reaching $520/t FOB China port, primarily due to weak demand from overseas markets. In contrast, domestic rebar prices have seen an increase of Yuan 30/t ($4/t) over the week, reaching Yuan 3,730/t ($510/t), mainly as a result of production restrictions in Tangshan.
Japan
Export prices for ferrous scrap continue to decline, reaching JPY 48,500/t ($323/t) FOB on October 27th. This represents a reduction of JPY 1,000/t ($7/t) in just one week, primarily due to subdued demand from major overseas markets. In a similar fashion, domestic prices for ferrous scrap have also decreased, dropping by JPY 500/t ($3/t) to JPY 50,500/t ($333/t), effective from November 1st.
Europe
In Northern Europe, the prices of HRC experienced a slight increase to EUR 615/t ($649/t) on October 27th, representing a rise of EUR 2/t ($2/t) compared to the previous week. This marginal increase comes amidst weak domestic demand. Similarly, in South Europe, HRC prices also saw a slight upward movement, reaching EUR 600/t, reflecting an increase of EUR 4/t ($4/t). Import HRC prices from Asia, on the other hand, remained mostly stable week on week, ranging between EUR 580-600/t CFR.
America
The import of US slabs saw a significant surge, soaring to a staggering 402,728 tons in September. This marked a remarkable increase of 94.60% compared to August and an impressive 117.3% compared to the same period last year. The average price for these slabs stood at $639 per ton. The primary sources of these imports were Brazil, supplying 298,413 tons, followed by Mexico with 80,760 tons, and Canada with 23,014 tons.
Over the past three weeks, there has been a steady rise in Brazilian iron ore exports, increasing by 4.4% or 361,000 tons, reaching a total of 8.6 million tons. On the other hand, the price of high-grade iron ore (65% Fe) has experienced a slight increase of $5 per ton over the week, now standing at $134 per ton CFR at the main ports.
Viet Nam
A leading steelmaker in Vietnam recently made a slight increase in the price of Hot Rolled Coil (HRC) for January delivery. This increase, amounting to $3 per ton, can be attributed to the depreciation of the Vietnam Dong against the Dollar. The new price offered by this company is approximately $570 per ton CIF Ho Chi Minh. However, the market for finished steel is currently experiencing weak demand, resulting in a slow recovery in production.
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