On November 19th, the price of domestic HRC in China surged as the government supported the real estate sector and loosened supply limitations. Domestic HRC prices in Northern Europe were down EUR 25/ton from the previous week, or 32% since the beginning of 2022. Suppliers believe that the price decline will be transitory.
Let us support and share with you in this blog for your business decision during this down-trend market around the world closing 2022.
China
The price of domestic HRC in China increased from Yuan 50/t ($7/t) to Yuan 3,770/t ($530/t) on Nov 19th amid government support real estate section & tend to ease covid restrictions. China's HRC export also increased to $570/t FOB China port, up $55/t from a week ago.
Japan
Japanese scrap export prices dropped to the lowest price from SEP to JPY 44,000/t ($314/t) FOB on Nov 18th due to the steel market dropdown. Suppliers expect that the price downtrend will be a temporary situation.
Europe
Domestic prices for HRC in Northern Europe were at EUR 625/t Ex-work mills on Nov 18th, down by EUR 25/ton from last week or down 32 % since the beginning of 2022. At the same time, the price for HRC in Southern Europe dropped to EUR 600/t Ex-works mills in Italy, down EUR 50/ton from the previous week. Buyer buyers tend to wait for the price of HRC to drop to the bottom, but it seems the HRC prices have already reached the bottom due to high production costs.
America
HRC price in the US fell to $720/MT ($655 per short ton) on Nov 11th, down by $33/MT or 1.3% from a week earlier. Maybe this is the lowest price because it is close to the production cost. The inventory level is getting lower but nobody buys more than the level they need.
Prices for HRC import at $585/t CFR main ports South America on Nov 18th, drop by $15/t from $600/t in the previous week. Clients were mostly worried if anti-dumping duties will be applied to HRC from China in Brasil.
Viet Nam
Prices for domestic construction steel products in Vietnam remained stable at around $590/t - $595/t after one month, from Oct 12th. The second flat steel producer in Vietnam will cut 15% of production capacity to stabilize prices in the Vietnamese market.
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