According to Goldman Sachs' latest Global Steel: The Steel Market Barometer - May Update report, average hot rolled coil (HRC) prices increased across almost all major regions in April, with Brazil leading the global surge. As reported by Goldman Sachs, Brazil recorded a 10 per cent month-on-month rise, followed by Japan at 6.5 per cent and China at 2.9 per cent. The investment bank noted that on a year-to-date basis, Brazil's HRC steel price performance has been the strongest in their sample at +21 percent, followed by the US at +15 percent. This sustained price momentum across multiple regions indicates strong underlying demand conditions in global markets, with Brazil emerging as the strongest-performing region in the current market cycle.
The price increases extended beyond HRC to other steel products, with Brazil again recording the sharpest increase in rebar prices at 12 per cent month-on-month, according to Goldman Sachs. Europe followed with a 6.9 per cent increase, while the Black Sea region saw a 6.1 per cent rise during April. Other regions also demonstrated price increases ranging from 6 percent to 13 percent, as reported by Goldman Sachs in their comprehensive market analysis. This broad-based price appreciation across different steel products and regions suggests strong underlying demand conditions in global markets, with Brazil maintaining its position as the strongest-performing region in the current market cycle.
Despite the global price surge, China's steel production remained under pressure amid delayed implementation of capacity cuts, as reported by Goldman Sachs. The investment bank's analysis indicates that China's steel output continues to face headwinds even as global markets experience significant price improvements. This contrast highlights the regional variations in steel market dynamics and production capacity adjustments across major producing nations, with China's challenges contributing to the overall supply-demand balance in global steel markets.
The sustained price increases across multiple steel products and regions suggest strong underlying demand conditions in global markets, according to Goldman Sachs' analysis. The report's findings indicate that global steel prices continued to strengthen across major markets in April and early May, with Brazil emerging as the strongest-performing region in the current market cycle. This trend reflects broader market dynamics affecting steel pricing across different product categories and geographical regions, with the price momentum suggesting continued strength in steel demand fundamentals despite regional production challenges.
