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In the third week of September 2024, LME (London Metal Exchange) prices showed relatively minor fluctuations.

LME rebar prices slightly increased from $578 to $579.50 per tonne, and Turkish export-grade steel scrap also saw an uptick, rising to $370 per tonne.

Below, we will also take a look at the price movements of other non-ferrous metals and the reasons behind these fluctuations.

Between September 16 and 20, 2024, the LME steel prices remained relatively stable, but this was the result of several complex factors at play.

One of the most significant factors was the uncertainty surrounding China's economic recovery. China plays a crucial role in global steel demand, yet its slower-than-expected recovery from the earlier economic slowdown left the market in a cautious mood. Optimism around rising steel demand had decreased, leading many traders to adopt a wait-and-see approach, which minimized significant price fluctuations. While there is still some hope regarding China’s stimulus efforts, their immediate impact on steel prices has been limited​.

Another key element was the stability of supply chains. Major markets like the U.S. and Europe saw steady demand for steel, and the supply side remained largely uninterrupted. This was particularly true for the steel scrap and rebar markets, where supply continued smoothly and prices stayed relatively stable compared to the previous week. The smooth supply chain operations contributed to maintaining the balance between supply and demand, keeping price volatility low​.

Lastly, energy costs and global trade dynamics played an important role in shaping steel prices. Steel production is highly energy-intensive, so energy price fluctuations have a direct impact on steel prices. During this period, energy costs remained relatively steady, and there were no significant shifts in global trade dynamics. This further contributed to the stability of steel prices in mid-September.

In summary, a combination of China's economic uncertainty, stable supply chains, and steady energy costs kept LME steel prices relatively unchanged during this period. Going forward, how these factors evolve—particularly China’s economic policies and energy prices—will be critical in determining the direction of steel prices.