Date: 04-11-2024
Steel price index – 2024/11/01
As steel prices fluctuate amid evolving global dynamics, MRS Steel's weekly Steel Price Index offers a comprehensive look at the latest numbers and the forces behind them. From international market shifts to emerging industry trends, delve into the key events impacting steel prices worldwide and stay ahead with insights tailored for industry professionals.Exporting CountryProductSupplierImporting CountryPrice (USD/MT)Trade & Shipment TermVietnamHRCHPDQVietnam532-534Jan shipmentChinaHRCAnfeng/Zongheng/Ruifeng/Ganglu/GoutangVietnam500-505CFR Vietnam – Dec shipmentChinaHRCAnfeng/Zongheng/TonghuaVietnam505-513CFR Vietnam – Dec shipmentChinaHRCRizhaoVietnam525-530CFR Vietnam – Dec shipmentChinaHRCAnfeng/Zongheng/TonghuaVietnam520-525CFR Vietnam – Dec shipmentKoreaHRCPosco/HyundaiVietnam535CFR Vietnam - Dec/Jan shipmentJapanHRCNippon/JFE/Kobe steelVietnam545CFR Vietnam – Dec/Jan shipmentThailandWire RodDexinThailand525CFR Thailand – Dec shipmentChinaWire RodShagangThailand520CFR Thailand – Dec shipmentChinaWire RodChinese millsManila505-510CFR Manila – Dec shipmentIndiaHRCJSW/TataIndia553-565EXW MumbaiChinaHRCCommercial gradesIndian ports520-525CFR Indian ports – commercial gradesTurkeyHRCEdermir/BorcelikTurkey607-610EXW Turkey - Nov/Dec shipmentRussiaHRCNMLKTurkey545CFR Turkey – Dec shipmentEUHRCThyssenkrupp AG/Salzgitter AG/TaTa Steel Europe ArcelorMittal DuisburgGermany620-631EXW Germany – Dec shipmentTurkeyHRCErdemirItaly609-620EXW Italy – Dec shipmentEUHRCJSW/TataEU main ports598-604CFR EU main ports - Dec/Jan shipmentIndiaHRCShangchenEU main ports625CFR EU main ports – Dec shipmentTaiwanHRCEZZEU main ports615-625CFR EU main ports- Dec shipmentEgyptHRCPosco/HyundaiEU main ports631-636CFR EU main ports – Dec/Jan shipmentKoreaHRCJFE/Kobesteel/Nippon steelEU main ports615-631CFR EU main ports – Dec/Jan shipmentUSHRCNucorUnited States740Consumer spot price – Dec shipmentMexicoHRCTernium/ArcelorMittal Las TruchasMexico740Consumer spot price – Dec shipmentWhile last week's steel prices reflect shifting market dynamics, a closer look reveals the global events and industry shifts driving these changes. Here’s what’s making waves in the steel industry right now:Severstal's demand forecastRussian steelmaker Severstal anticipates a 5-7% decline in steel demand due to high borrowing costs affecting customer investment plans. The central bank's recent interest rate hike to 21% has intensified financial strain on industrial companies, particularly small and medium-sized enterprises, and threatens infrastructure development goals. Severstal reports that 80% of its sales are now within Russia, with the construction and mechanical engineering sectors experiencing reduced activity and lower demand, leading to declined investment projects. In the third quarter, steel demand fell by 9%.Outokumpu's market outlookFinnish stainless steel producer Outokumpu reported higher-than-expected third-quarter core profit, driven by strong performance in its ferrochrome business and higher stainless steel prices in Europe. However, the company warned of deteriorating market conditions in Europe and North America for the final quarter of the year, predicting flat or declining stainless steel deliveries by up to 10%, and sequentially lower core earnings. CEO Kati ter Horst cited challenging market conditions, including weak demand, cost inflation, and cheaper imports from Asia as major concerns.JSW Steel and POSCO collaborationIndia's JSW Steel has signed a preliminary agreement with South Korea's POSCO to establish an integrated steel plant with an initial capacity of 5 million metric tons per year. The joint venture will also include collaboration on renewable energy and battery materials for electric vehicles. JSW Steel, the largest steelmaker in India by capacity, will work with POSCO to support the energy needs of the proposed steel plant and contribute to building an EV ecosystem in India. POSCO, which already operates a steel mill in Maharashtra supplying automakers, had previously abandoned a $12-billion project in Odisha but later partnered with Indian billionaire Gautam Adani's infrastructure group for a $5 billion investment in Gujarat.BlueScope's profit guidanceAustralian steel company BlueScope forecasts a profit hit for the first half of the fiscal year due to record levels of Chinese exports, inflation, and uncertainties in the US related to the impending presidential election. It anticipates underlying earnings before interest and tax (EBIT) between $270 million and $310 million, down from the initial estimate of $350 million to $420 million. BlueScope plans to implement around $200 million in cost and productivity improvements. CEO Mark Vassella acknowledges challenging conditions in the global steel industry, influenced by East Asian market softness, inflation, and US economic uncertainties. In North America, the North Star division’s performance is expected to decline, and customer orders are being deferred pending election outcomes. While domestic demand in Australia is stable, the Australian Steel Products segment is affected by softened export contributions and East Asian steel pricing. The company's operations in China and Southeast Asia face economic and operational challenges, respectively. The forecast is subject to changes in spread, exchange rates, and market conditions. Citi analysts have downgraded BlueScope’s rating from buy to neutral, noting volatility in commodity prices and the cyclical nature of BlueScope’s business. BlueScope's shares dropped 1.4%, closing at $20.90. The company will discuss its performance in an upcoming annual meeting on November 19.* Please note that all pricing information in this article is based on data collected and analyzed by our team and is intended for reference purposes only. Prices are subject to change and may not be accurate at all times.