Issue 46, 2024 - This week's editorial: Asian markets come off, Europe rises despite economic despair

Global steel markets drifted last week as participants digested the repercussions of the post-election shift in US policy and hoped for more stimulus news from China following the recent disappointing announcements. Asian prices came down after losing policy sentiment support, while European values inched up, despite economic doom and gloom, as producers continued to try and force through price hikes announced in October. Many in Europe were asking themselves, is it Christmas yet?

Iron ore dipped below $100/tonne cfr China for the first time since September as iron ore stockpiles at major Chinese ports continued to rise and hot metal output was expected to fall as more steel mills initiate winter maintenance. This was despite the Chinese government announcing new tax reductions on real estate transactions on Wednesday, to stimulate the struggling property market.

Coking coal prices dipped $2.39/t on-week, with the Trump election victory dragging on market sentiment. Some sources were worried about what impact potential US tariffs will have on coking coal demand for steelmaking. Chinese hot rolled coil shipments to Vietnam accelerated but only because parties were keen to conclude business before any anti-dumping duties come in – transaction prices were down.

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