Global Cold Rolled Coil Market Settles on Mixed Note, Price Rises in US and China Contrary to Germany
Global Cold Rolled Coil Market Settles on Mixed Note, Price Rises in US and China Contrary to Germany

Global Cold Rolled Coil Market Settles on Mixed Note, Price Rises in US and China Contrary to Germany

  • 02-Apr-2024 4:51 PM
  • Journalist: Harold Finch

With the week ending on March 22nd, In the USA, Cold Rolled Coil prices are rising as domestic mills implement price hikes. Transaction prices vary, but overall, there's a steady upward trend without formal announcements. Producers show discipline by not aggressively offering products at lower prices. US new vehicle sales also increased, reflecting strong downstream demand. In Germany, Cold Rolled Coil prices dropped due to weak demand and lower raw material costs. China, on the other hand, saw a surge in prices due to reduced inventory levels and increased demand from the automotive sector.

The USA week ending on March 22nd has seen an upward trend of 0.40% weekly increase in prices for Cold Rolled Coil, with domestic mills announcing price hikes and showing adherence to these changes. While the market's direction is uncertain, it's clear that Cold Rolled Coil prices are increasing. Transactions are occurring steadily but slowly, with prices rising discreetly, indicating mills are raising prices without formal announcements. Producers are showing discipline by not aggressively offering products like Cold Rolled Coils and quoting higher prices. The market's stability and variety are strengthening order book strength, supported by a 16.4% month-on-month and 9.6% year-on-year increase in US new vehicle sales in February.

In Germany, Cold Rolled Coil prices saw a drop of decline of 0.88% weekly due to weakened demand and cheaper raw materials, particularly before the Easter holiday in Europe. This price decrease was worsened by falling coking coal prices, adding to the pressure on Cold Rolled Coil prices. While mills can still lower prices further, cautious buyers expect bigger reductions in the future. The market faces tough competition from imports and a 4.3% decrease in calcium carbonate prices in February in Germany. These factors, combined with slow demand in key sectors like automotive and construction, create a subdued trading environment for Cold Rolled Coil. Despite lower raw material costs, mills are hesitant to make significant price cuts and haven't announced any production cuts. Overall, demand remains weak across industries, with minimal activity in renewable energy.

Cold Rolled Coils prices surged of 0.81% weekly in China due to diminished inventory levels post-Lunar New Year and weather recovery. China's prominence in the global automotive sector as a major Cold Rolled Coils consumer is notable. The automotive industry's growth and preference for lightweight materials drive this demand, bolstered by lowered raw material inventories (as per NBS and CFLP data). Freight charges from the USA spiked by 14%, influencing coil prices. According to the NBS report China's industrial firms also saw a 10.2% profit increase year-on-year, alongside steady power generation growth.

ChemAnalyst analysis suggests that the growing demand in downstream sectors is set to impact the prices of Cold Rolled Coils. The construction industry's increased purchasing power is contributing to the rise in prices. Initiatives by the German government to rejuvenate the Cold Rolled Coils sector are expected to further drive prices up. Additionally, the automotive sector's rising demand is adding to the overall demand for Cold Rolled Coils globally, potentially influencing their prices in the future.

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