Global steel market volatility and regional shifts

Global steel production and market stability continue to experience significant regional fluctuations and volatility. In the United States, a divergence has emerged between steel and scrap prices; hot-rolled coil prices have risen due to protective tariffs, while scrap prices have declined amid concerns regarding global oversupply.

India’s steel sector maintains strong momentum. Steel Authority of India Ltd (SAIL) reported a 13% year-on-year increase in August sales, reaching 1.87 million tonnes, driven by demand for railway supplies and specialized products. Additionally, Steel Exchange India Limited achieved its highest-ever monthly re-bar production of 24,823 metric tonnes in August following the commissioning of a new reheating furnace.

In Vietnam, VinMetal is seeking environmental permits for a $3.2 billion steel complex in Ha Tinh, which intends to import approximately 950,000 tonnes of scrap steel annually. Meanwhile, China Steel Corporation has announced price increases for October and the fourth quarter, citing high metallurgical coal costs and supply constraints linked to US tariff policies and European maintenance.

On a broader scale, the global supply-demand balance remains precarious. Market volatility is being driven by geopolitical developments in the Black Sea and the Strait of Hormuz, rising energy costs, and a continued decline in Chinese real estate investments.