Global Steel Plate Market Splits: Germany Strengthens as USA and China Prices Slide

Prices in Germany increased 1.3% and is contrary to the global trend, as conversion costs are high and infrastructure demand is rising. In both the USA and China, downward price movements may have reflected plentiful feedstock supply and reduced industrial activity.

Key Takeaways:

• German prices rose 1.3% on elevated energy costs and active downstream demand
• USA values declined 1.3% amid oversupply and extended lead times below 5.5 weeks
• Chinese prices fell 1.8% with iron ore inventories at 130.67 million tons showing minimal drawdown
• Raw material availability remained abundant across all regions, supporting bearish sentiment in USA and China
• Energy costs emerged as key differentiator, supporting German steel plate pricing despite global headwinds

Germany set a resilient steel plate price with a 1.3% weekly gain due solely to consistently high production costs for both BF-BOF and EAF production pathways that were still high. German domestic mills that cover 70% of the plate demand in Germany continue to do well thanks to UnionStahl Nord activity covering construction grades across Germany. Plate buyers were assured by the slight increase in flat rolled coil spot price indicating some stability in industrial activity providing support for the plate sector.

Despite continued raw materials flows and steady input costs, USA steel plate prices saw a 1.3% decline for the period. Mills preserved an 85% share of the domestic market with 79.5% utilization. The plate market was oversupplied as service-center inventories continued to unwind. Seasonal, slower summer demand continued with muted pipeline and heavy equipment bidding, leading to overall steel plate values weighing lower.

China, the largest iron and steel producer in the world, logged a 1.8% steel plate reduction due to ample feedstock availability combined with a poor demand fundamental, the underlying demand fundamentals throughout the steel plate markets have heavily weighed on the plate market, along with the sheer lack of new contracts in shipbuilding, offshore wind, and onshore construction machinery, throughout most of the month. The alternative feedstock of iron ore remained unchanged at China's major ports.

Import dynamics varied greatly by region. The U.S. steel plat markets experienced a reduced import booking activity due to the effects of tariffs, while Germany was exposed to potential export volume pressures from 15%-50% bilateral tariffs. Chinese steel exports remained restricted due to weak global manufacturing activity.

According to ChemAnalyst, steel plate markets are expected to remain geographically bifurcated in the short term - with German prices supported by energy cost premiums and construction demand - while both the USA and Chinese steel plate markets continue to suffer from a lack of support from underlying demand with the overhang of surplus supply and faltering industrial activity. Not developing further price erosion will likely be contingent on the amount of steel plate restocking undertaken or any interruptions to steel plate supply.