With the week ending on 2^nd May, cold rolled coil prices reflected divergent trends across major global regions.

Key Takeaways

• The U.S. cold rolled coil market is under strain due to oversupply and weakened export activity, leading to softening prices.
• German and Chinese cold rolled coil markets remain stable, thanks to balanced domestic production and demand, with limited impact from international trade volatility.

USA

Cold rolled coil prices in the USA fell as supply outpaced sluggish demand, creating a market imbalance. At the same time, the supply of United States cold rolled coil seemed to be under the dominion of foreign trade powers. U.S. departments of commerce initial intelligence report indicated an increase in domestic availability relative to the region’s spending at marketplace during the year and the supply was expected to rise in the region. This change is indicative of the unsteady state of international commerce which has contributed to greater supply of the product in the US market. Demand, however, remained weak because US cold rolled coil exports plummeted which further lowered the supply equilibrium point of demand and supply. The drop in demand is observed particularly in major spending outlets due to the declining exports impacting the revenue growth immediately.

Germany

German cold rolled coil prices remain stable. This stability is being observed following consistent production and demand levels, reflecting an equilibrium market situation. On the supply side, German steel manufacturers have been recording a consistent rate of production so that production capacity remains in line with local demand. Additionally, import and export pressures have not been any significant challenge to the market as domestic manufacturers are fulfilling most of the demand without requiring foreign products. On the demand front, the steel market has been bolstered by stable industrial activity, with most sectors maintaining consistent performance.

China

Chinese cold rolled coil prices remain stable. This is because production has been carried out at a stable rate and stable demand, which is indicative of balanced market conditions. Steel producers in China have kept their output stable, ensuring that production remains well-matched with local market demand. In addition, import and export pressures have not been a significant concern, as domestic producers are sufficiently meeting most of the demand without depending on foreign products. Demand side, the Chinese market is dominated by consistent industrial production activity in different sectors.

According to ChemAnalyst, Cold Rolled Coil prices in the United States could come under downward pressure as inventory levels continue to rise. Meanwhile, cold rolled coil prices in Germany and China are likely to remain stable, underpinned by consistent demand and a well-aligned supply environment.