For the Quarter Ending September 2022
During the third quarter of 2022, the Chequered Plate prices witnessed a negative sentiment in the US market owing to the subdued demand outlook. As per market players, Chequered Plate prices have fallen as service centers have held off buying in the face of weak demand from consumers, whose shortages of labor and parts have hit. Fears that the United States is either already in or on the verge of a recession have also reduced purchases. Furthermore, the mill only serves the flat-rolled steel market, and the idling was blamed on high import levels and market conditions. The idling is the first market-related closure reported by a US steelmaker in recent memory. Market participants have complained about persistent oversupply and a lack of more permanent production cuts to reduce volumes. US Steel has idled its No. 8 blast furnace at its Gary Works steel mill in Indiana. Steel mill outages throughout the rest of the year will eliminate nearly 54431 MT of flat-rolled production, but few believe this will alleviate the persistent oversupply. Therefore, the discussions for SS Chequered Plate (6 mm) prices for Ex Texas (USA) settled at USD 4483/MT.
In the Asian market, the Chequered Plate prices declined in the Indian market during the third quarter of 2022 amidst falling raw material costs and dwindling domestic demand. Some plants have shut down operations, while others were operating at 40-50% capacity, driving up the price of lumps. Furthermore, pellet prices have trended upward as demand for the material typically rises during the rainy season, unlike iron ore, which retains a higher moisture level, resulting in an iron ore shortage during the monsoons. Some commodities fell in price in July due to production cuts in tier 1 mills and the secondary sector, while others rose due to supply constraints. In anticipation of further drops, dealers reduced purchase orders. Indian steel mills were reportedly postponing annual maintenance to avoid stockpiling. Some prominent buyers negotiate for more discounts or hold back purchase decisions because of price volatility. Thus, the SS Chequered Plate (304-6 mm) prices for Ex Shanghai (China) settled at USD 2082/MT.
In the European market, the Chequered Plate prices witnessed a sliding price trend during the third quarter of 2022 owing to the rising concerns about consumption, the energy crisis, and a looming European recession. Despite weak demand for steel in Europe, the producers have been pushing for higher prices for both flat and long steel products recently, seeking USD 50-100 per tonne increases to account for rising costs. According to market participants, because these price increases are cost-driven rather than demand-driven, they will be challenging to achieve in transactions. Furthermore, if more output curtailment is implemented in the autumn of 2022, European mills may reach a point where the supply and demand balance is restored by the first quarter of 2023. As a result, producers may try to implement price increases. Sources agreed that the impact of the current production cuts on European steel prices was still uncertain, and they expected more European mills to reduce output to balance the market. Thus, the SS Chequered Plate (304-5mm) prices for Ex Ruhr (Germany) settled at USD 3870/MT.