Issue 40, 2024 - This week's editorial: Global pricing receives China boost, European manufacturing woes continue

Steel prices firmed around the globe last week as China entered a week-long holiday following the issuance of its giant stimulus package the week before. Markets waited with bated breath for China’s return, uncertain if the feel-good factor would translate into a concrete improvement in market fundamentals. ArcelorMittal issued a steep price hike for coil sales in Europe, but iron ore market sentiment softened by the end of the week, while coking coal prices recorded an on-week drop.

The KORE 62% Fe price jumped over $8/tonne last Tuesday as China began its holiday but saw minimal movement for the remainder of the week. Market participants questioned the sustainability of China’s monetary easing policies given the country’s longer-term structural issues and property sector weakness. Fob Australia coking coal meanwhile dropped over $3/t on-week amid reports one steel mill had re-sold a cargo despite the positive sentiment around China.

Nevertheless, in Turkey, scrap suppliers finally managed to secure higher transaction prices after struggling in previous weeks despite Turkish rebar values rising. HMS 1&2 80:20 jumped $18/t on a cfr Turkey basis throughout the course of the week, supported by the Chinese market sentiment, US dockworker strike’s potential scrap supply impact, and disappearance of low-priced Asian billet alternatives. Scrap also received a boost from increased Indian import demand as the country’s long products value chain, especially, began restocking following the end of monsoons.

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