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