For the Quarter Ending December 2022
North America
In the final quarter of 2022, the prices of chequered plates declined in the US market as demand for flat-rolled products was deteriorating, and mills struggled to maintain balance while reducing output. Mills successfully kept the majority of transactions at the higher end of the spectrum. Due to mill outages, weak demand, and pressured export prices, the domestic steel market in the United States appeared to be moving further away from recovery. Bearish sentiment in the global market resulted from decreasing production volumes, sharply falling prices in the major export destination, and low demand for stainless steel (flats) in Turkey and the United States, which prevented costs from rising. With falling scrap prices, US Stainless Steel mills had tried to remain competitive with import offers as downstream demand from new projects had not warranted additional spot buys or bookings of more significant imports, along with rising financing costs. Steelmakers and some service centers believe the market was finally approaching an absolute bottom in ending the fourth quarter. As a ripple effect, the SS Chequered Plate (6 mm) prices for FOB Port of TX City (USA) settled at USD 4610/MT in mid-Q4 2022.
Asia Pacific
Chequered plate prices in China fell in the fourth quarter of 2022 due to declining demand dynamics and rising COVID infection. In October, the price of chequered sheets rose slightly. Following National Day, the arrival of Chequered sheets in the market was not as anticipated, and some specifications were in short supply. Furthermore, raw material supply was an issue. According to buyers, there was no discernible improvement in demand, and buyers' willingness to purchase in the downstream market was low. In mid-Q4, epidemic prevention and control measures were tightened in some areas, and logistics and transportation were disrupted. Near the end of the quarter, some merchants offered discounts. However, there was little availability of Chequered Plate inventory at the time. Downstream enterprises had reduced their inventory pressure due to the capital flow. Furthermore, domestic and export sales were significantly lower this year compared to previous years. As a result, the November Ex Tangshan (China) SS Chequered Plate (304-6 mm) prices were fixed at USD 2821/MT.
Europe
Chequered Plate prices in the European market plunged in the fourth quarter of 2022 due to a declining demand outlook and rising energy prices. Buyers who ordered Chequered Plate for December delivery said it was already available on the market, with lead times from several mills as low as two weeks in October. The market for European chequered plates reopened in the mid-fourth quarter. After a long period of inactivity during which Chequered Plate prices fell and buyers purchased in small quantities, European demand for Chequered Plates resumed in November. Buyer demand had increased while producers in Europe and around the world were shutting down plants due to high energy costs. Buyers asserted that terminal demand had remained largely stable, and distributors began restocking in November, indicating that inventories had been depleted. However, no large cargoes were involved in the restocking, and increased distributor demand not affected prices. Even for the first half of the year, actual demand will remain current until 2023. One European mill was planning extra melting in December ahead of a significant shutdown in March. As a result, the SS Chequered Plate (304-5mm) Ex Ruhr (Germany) was settled in November at USD 3727/MT.
For the Quarter Ending September 2022
North America
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.
Asia Pacific
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.
Europe
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.
