Cold Rolled Coil Market Showcases Mixed Trends: Rises in the US, Declines in China, with stable Germany
Cold Rolled Coil Market Showcases Mixed Trends: Rises in the US, Declines in China, with stable Germany

Cold Rolled Coil Market Showcases Mixed Trends: Rises in the US, Declines in China, with stable Germany

  • 10-Jul-2024 4:02 PM
  • Journalist: S. Jayavikraman

With the week ending on June 28th, in the US Cold Rolled Coil prices dropped as producers like Nucor adjusted pricing strategies to manage orders and maintain market share, leading to reduced prices. The ArcelorMittal strike in Mexico created export opportunities for US mills, impacting supply dynamics positively. Moreover, in Germany, Cold Rolled Coil prices remained stable due to consistent market dynamics. Meanwhile in China, prices decreased due to oversupply caused by increased production, slow market conditions, and high inventory levels. Overall, weak demand outlooks and subdued prospects led to pricing cuts and caution in the market.

During the week ending on June 28th, Cold Rolled Coil prices in the US decreased by 1.0%. Domestic production adjustments had a significant impact on these price drops. Leading steel producers such as Nucor were adapting pricing strategies to manage their order books, for example, they reduced their spot prices. A distributor in the Midwest noted that these adjustments were necessary for producers to maintain order flow. A Cold Rolled Coil consumer mentioned that recent mill prices showed sizeable reductions, indicating producers were focused on preserving market share even if it meant lower prices. The strike at ArcelorMittal's Lazaro Cardenas steel mill in Mexico led to potential export opportunities for US mills, influencing supply dynamics and providing temporary relief for US producers facing sluggish domestic demand. Market sentiment remained cautious, with price decreases reflecting a broader trend of weak demand outlooks. Some producers were predominantly booked for the coming months, while others experienced a slowdown in new orders expected to persist. Market participants highlighted that pricing cuts were part of the ongoing trend of subdued demand prospects.

The prices of Cold Rolled Coil in Germany have stayed consistent with the previous week's trend due to unchanged market dynamics and conditions, with no major changes in demand or supply impacting final prices.

The prices of Cold Rolled Coil in China decreased by 1.3% at the end of the week on June 28th due to an imbalance in supply and demand. The rise in production aimed to serve both domestic and international markets, resulting in an oversupply and downward pressure on prices. The rainy season and high temperatures further worsened the supply surplus by reducing construction activities, a major consumer of Cold Rolled Coil. Steel mills experienced increased pressure to distribute their products but faced challenges due to the slow market conditions and high inventory levels during the off-season. Additionally, the decline in the construction sector, along with strong manufacturing, led to excess molten iron entering the metal market. This situation increased inventory pressures and contributed to the overall decline in prices.

As per ChemAnalyst, Cold Rolled Coil prices in the USA may witness an increase due to rising demand in various industries. The construction sector could see a revival, stimulating purchases and drive up prices. Additionally, Germany is contemplating strategies to boost its Cold Rolled Coil industry domestically, which could contribute to a global price uptrend. Meanwhile, China's automotive industry is expanding, potentially spurring a surge in Cold Rolled Coil demand.

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