Q4 2019 Steel Report Overview

Q4 2019 Steel Report Overview

Global steel prices continued falling in Q3 2019 as overall economic sentiment remains weak across most regions. Many markets are at historical lows globally. Hot-Rolled prices are currently at 3-year lows with Europe being the weakest region. Overall demand and consumption has dropped during Q3, led by key manufacturing industries and compounded with dropping input costs.

  • Despite a short-lived price rally in early Q3, US Flat prices continued downwards, falling 3% and reaching $560/MT in October. The utilization rate, which had been soaring well above 80% for several of the last few months has fallen back down to 78%.
  •  EU continues to be the weakest flat market globally, settling at €458/MT in October as both iron ore and scrap prices have dropped.
  • Chinese flat prices were the hardest hit in Q3, with a 19% dive that marked a new 24-month low of $462/MT as of October.
  • Iron Ore prices have finally receded following the Vale dam incident, falling 15% in Q3, although prices remain at elevated levels. Scrap prices in both the US and EU fell to 24-month lows.

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

The Steel Team at Applied Value

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