Global Steel prices saw a final upward push in January before the impact of COVID-19 turned the market downwards. Now in April, most steel prices have fallen between 4 and 16% since January. The most significant downward movement occurred first in China and then in the US markets.

• The US HR price increases that began in Oct 2019 have nearly been erased in early 2020, as prices dropped 16% in Q1, starting April at ~$560/MT.
• EU HR prices surged 14% in Q1 2020, the first significant upward movement in pricing in over two years as buyers looked to increase their stocks during a panic buy caused by news that the Italian mill Ilva would potentially close and cause a significant supply shortage. The potential closure stems from ongoing negotiations between Arcelor and the Italian government rather than COVID-19. After peaking in March, prices have started falling in line with the rest of the market as demand and production have fallen off.
• China’s HR price plummeted ~15% Q-o-Q as it became the first country to experience the impact of COVID-19. Prices have yet to rebound, although demand and production have recovered nearly back to pre-COVID levels.
• Scrap prices rose 14% in the US, and 3% in Europe, but fell -3% China, while Iron Ore prices softened -1% over the same period. Coking Coal prices surged 17% in Q1, due to supply concerns in China/Australia.

As always, we look forward to hearing your questions and comments

The Steel Team at Applied Value

Steel prices in the US and China rebounded slightly in Q4 2019, rising off of multi-year lows in both regions. In contrast, European domestic prices fell even further as manufacturing activity continued to decline and crippled demand. European domestic flat steel prices are below that of both the US and China.

• US HR prices dipped early in Q4, falling to new historic lows of ~$541/MT in October before aggressively rebounding +16% to end the year at ~$625/MT.
•  EU HR prices continued downwards, falling 9% QoQ after nearly 20+ straight months of falling, despite upward movements in both the US and China.
• China flat prices slightly increased at 3% in Q4 2019, but the trend is unlikely to last as increased domestic production increases supply surplus.
• Scrap prices moved strongly upwards across the board with Q4 prices rising 6%, 6%, and 14% in the US, EU and China, respectively. The decline of Iron Ore prices has slowed with Q4 prices falling just 2%, although prices still remain 17% above levels from the same period last year.

As always, we look forward to hearing your questions and comments.
The Steel Team at Applied Value