[SMM EU Weekly Review] Policy Barrier Anchors Price Spreads; ADI Outage Aggravates Supply Disruptions

[Vietnam] Vietnam’s import HRC market strengthened slightly, with the ASEAN HRC assessment rising by USD 1/tonne to USD 536/tonne CFR Vietnam. A deal for Indonesian-origin SAE1006 HRC was concluded at USD 536/tonne CFR Vietnam this week, against offers of USD 535–540/tonne. Indian material was offered at USD 545/tonne CFR or above, well above buyers’ targets of USD 530–535/tonne and attracting limited interest.

[Rebar] Today, rebar export quotations at Tianjin Port remained stable, with overall transaction prices ranging from USD 479-484/ton. According to exporters, market inquiries were decent today, with quotes requested from buyers in Southeast Asia, Africa, and South America. Market activity saw a slight improvement.

Malaysia’s steel market strengthened modestly this week, with long steel prices moving higher despite persistently weak construction-sector demand, while domestic HRC prices remained firm at relatively elevated levels. In the flat steel market, domestic S275JR HRC was heard at around MYR 2,200/tonne EXW for regular customers, while offers to non-regular buyers reached approximately MYR 2,230/tonne EXW. Compared with quotations seen last week, the market has continued to edge higher, although downstream purchasing remained largely need-based and buyers showed limited willingness to build inventories. Long steel recorded a more visible increase. Domestic B500B rebar transactions were heard at around MYR 2,180/tonne delivered during the week, with Southern Steel offering around MYR 2,200/tonne. Meanwhile, C12D wire rod prices rose to approximately MYR 2,300/tonne delivered, up around MYR 50/tonne from the previous week. However, market participants indicated that construction steel demand remains weak, suggesting that the latest price increases have been driven more by adjustments in mill pricing and firmer upstream price references than by a meaningful recovery in end-user consumption. On the export side, Malaysian-origin slab was heard at around USD 500/tonne CFR Türkiye, providing an initial reference for Malaysia’s potential slab competitiveness in overseas markets. Looking ahead, Malaysian steel prices are expected to remain relatively firm in the near term. Nevertheless, with construction demand still subdued, the sustainability of further increases in rebar and wire rod prices will depend on whether downstream buyers accept the higher levels and whether regional steel prices provide additional support.