US Cold Rolled Coil Market Witnesses an Uptick in Market Trades Amid Strong Purchases
US Cold Rolled Coil Market Witnesses an Uptick in Market Trades Amid Strong Purchases

US Cold Rolled Coil Market Witnesses an Uptick in Market Trades Amid Strong Purchases

  • 19-Dec-2023 2:56 PM
  • Journalist: Jung Hoon

Texas, USA- In the initial half of December, there has been an increase in Cold Rolled Coil prices in the US spot market. This uptick is a result of a recovery in demand from downstream auto industries, attributed to recently finalized agreements with the workers' Union. Mills successfully negotiated higher prices for Cold Rolled Coil this week, as the supply continued to tighten in the US spot market. Throughout the market, Cold Rolled Coil mills are reducing production rates due to ongoing maintenance outages lasting several days.

The upward trajectory of Cold Rolled Coil Feedstock, including Iron ore, was supported by various factors. In October, Mexican iron ore and pellet production increased every month, contributing to the positive trend. Simultaneously, the primary coke output hit a historic low in terms of tonnage. However, the overall production of steelmaking materials showed a year-on-year decline. According to data provided by the Instituto Nacional de Estadística y Geografía (Inegi), Mexico produced 589,092 tonnes of iron ore in October. In the United States, negotiations for the scrap price in December concluded last week, with several mills agreeing to prices higher than the initial bids. Despite a Midwestern mill presenting an initial bid higher than November's for prime scrap grade. This resulted in an upward trend in Cold Rolled Coil prices in the US spot market.

In a noteworthy development in the Cold Rolled Coil market, the planned acquisition of U.S. Steel by Nippon Steel could establish the world's second-largest steel producer, contingent on potential divestitures as part of the integration process. Nippon Steel, a global market player in the Cold Rolled Coil industry has agreed to acquire the renowned Pittsburgh, Pennsylvania-based steelmaker at an expense of USD 14.9 billion. This strategic move is expected to enhance Nippon Steel's manufacturing and technology capabilities, expanding its reach to better serve stakeholders, including customers and society in the International Cold Rolled Coil market. The acquisition will diversify Nippon Steel's global footprint by significantly increasing its production capacity in the United States. This expansion complements its existing primary geographies in Japan, ASEAN, and India. Following the acquisition, Nippon Steel's projected total annual crude steel capacity is set to reach 86 million tonnes, a significant step towards achieving its strategic goal of attaining an annual global crude steel capacity of 100 million tonnes.

According to ChemAnalyst, the Cold Rolled Coil price is expected to continue its upward trend, driven by sustained demand from downstream automotive industries and the energy sector. The ongoing Nippon steel and US steel acquisition deal, combined with an improving employment market across the USA, are anticipated to further bolster the growth of the Cold Rolled Coil market in the country.

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