For the Quarter Ending March 2024
North America
The North American market for Electrical Steel in Q1 2024 has experienced a mixed pricing environment, with prices steadily increasing in beginning of the quarter. Several significant factors have influenced market prices during this period. Firstly, the stability of steel production within the region has contributed to a tightening of supply, leading to higher prices. Additionally, strong demand for industrial fabrication and increased investment in infrastructure have boosted the overall demand for Electrical Steel.
In the USA, the market has seen the maximum price changes, with prices steadily rising throughout the quarter. This trend can be attributed to the recovery in the manufacturing sector and expected rises in construction material costs. However, buyer uncertainty amid macroeconomic challenges has led to cautious purchasing behaviour, potentially limiting further price increases.
Overall, Q1 2024 has shown an increase in prices compared to the same quarter last year, indicating a positive pricing trend. Additionally, prices have increased by 2% compared to the previous quarter in 2024. Notably, there has been a slight decline in prices between the first and second half of the quarter.
Asia-Pacific
The pricing environment for Electrical Steel in the APAC region during Q1 2024 has been influenced by various factors. Overall, the market has experienced a mixed trend, with significant variations observed in Japan. In the APAC region, demand for Electrical Steel has been moderate to high, driven by the performance of downstream industries such as automotive and construction. However, there have been challenges in the form of low domestic demand, supply chain disruptions, and trade interruptions. The market has also been impacted by inventory levels, with some regions experiencing surplus stocks. In Japan, the pricing dynamics for Electrical Steel in first two months of Q1 2024 have been bearish, with a notable decline in prices. This can be attributed to decreased demand from downstream industries and surplus inventories. Trade disruptions and increased freight costs have further exacerbated the situation. Despite these challenges, companies like Toyota and others in the Japan Automobile Manufacturers Association (JAMA) have continued to innovate and focus on electric vehicles. In March, Japan saw a significant rise in coal prices, driven by increased local demand and higher prices from exporting countries. This uptick, affecting materials, fuel, and shipping costs, boosted overall expenditures, and led to higher output prices. This shift hints at a better balance between supply and demand in Japan's market, impacting Electrical steel pricing. The industry's growth has raised inflation rates, though there's a slowdown in manufacturing and an increase in new orders, suggesting a potential increase in prices.
Europe
The market for Electrical Steel in the Europe region experienced a challenging first quarter of 2024, with prices declining significantly. Several factors influenced the market prices during this period. Firstly, there was a decrease in demand from the downstream construction industries, which resulted in lower consumption of Electrical Steel. This trend was particularly evident in Germany, where the residential construction and housing sector faced a decline, leading to concerns about a potential recession in the German economy. Additionally, the overall economic conditions in the spot market were deteriorating, causing buyers to adopt a cautious approach and delay their purchasing decisions. The prices of Electrical Steel in Europe showed a negative correlation with the economic conditions, reflecting the weakened demand. In terms of seasonality, the first quarter of 2024 saw a 24% decrease in prices compared to the same quarter last year. There was also a 13% decline in prices from the previous quarter in 2024. The second half of the quarter experienced a further decline of 11% compared to the first half, highlighting the downward trend in prices. Overall, the pricing environment for Electrical Steel in the Europe region during the first quarter of 2024 was negative, with prices experiencing a significant decline. The market was influenced by factors such as decreased demand from the construction sector, deteriorating economic conditions, and a negative correlation with overall market sentiment.
For the Quarter Ending December 2023
North America
The North American Electrical Steel market in Q4 of 2023 experienced dynamic shifts influenced by intricate factors. Q4 2023 unfolded with distinctive nuances. Notably, there were no reported plant shutdowns, ensuring a continuous supply-demand equilibrium. The USA emerged as a focal point, witnessing significant price fluctuations.
Robust trend analyses revealed subtle correlations, seasonality patterns, and pricing intricacies, portraying the market's adaptability. Over the last year, there was an 11% increase in Electrical Steel (M15-C5) Coil prices, underlining the market's resilient growth. A calculated 7.2% rise in prices from the previous quarter showcased the market's responsiveness to evolving conditions.
Further, a 3% price disparity between the first and second halves of the quarter emphasized evolving market dynamics. The quarter concluded with Electrical Steel (M15-C5) Coil DEL Tijuana in the USA priced at USD 5716/MT, encapsulating the region's market trajectory. This analysis captures the multifaceted influences that defined the North American Electrical Steel market in the final quarter of 2023.
APAC
The last quarter of 2023 witnessed a dynamic landscape for the APAC Electrical Steel market, characterized by strategic shifts and intrinsic market influencers. The quarter unfolded with notable fluctuations driven by nuanced factors, including supply chain dynamics, regulatory intricacies, and variations in raw material costs. This complex interplay of elements shaped the Electrical Steel landscape, maintaining a global perspective. No reported plant shutdowns impacted market dynamics, ensuring a steady flow of supply and demand. Among the diverse countries in the APAC region, Japan emerged with distinctive pricing adjustments, solidifying its position as a key player in regional market shifts. Correlation analyses uncovered subtle interdependencies among trends, seasonality, and pricing, highlighting the market's inherent adaptability. The calculated percentage change from the current to the previous quarter, although not explicitly disclosed, reflected the market's nuanced response to external stimuli. Electrical Steel (50 WW 800) Coil Ex Osaka in Japan concluded the quarter at a representative price, encapsulating the region's resilience in navigating market intricacies. This comprehensive analysis unveils the multifaceted dynamics that defined the APAC Electrical Steel market in the final quarter of 2023.
Europe
The European Electrical Steel market witnessed a distinctive landscape in Q4 of 2023, marked by nuanced dynamics. Notably, the quarter transpired without any reported plant shutdowns, ensuring uninterrupted market operations. Germany, standing out with substantial price fluctuations, played a pivotal role in shaping the regional narrative. Rigorous trend analyses unveiled intricate correlations, seasonal patterns, and pricing intricacies, reflecting the market's adaptability to various influences. Over the last year, there was a noteworthy 6% decrease in Electrical Steel (50 WW 800) Coil prices, signaling a shift in market forces. Additionally, a calculated 5.2% reduction in prices from the previous quarter emphasized the market's response to evolving conditions. The quarter concluded with a 3% price disparity between the first and second halves, underscoring the market's dynamic nature. Electrical Steel (50 WW 800) Coil FD-Ruhr in Germany marked the quarter's end at USD 2184/MT, encapsulating the prevailing market scenario. This comprehensive overview delineates the intricacies that defined the European Electrical Steel market in the concluding quarter of 2023.
For the Quarter Ending September 2023
North America
In the US spot market, Electrical Steel prices remained stable due to static demand from the electrical and power transmission sector, driven by uncertainties stemming from the US Federal Reserve's economic policies. Buyers adopted a cautious approach, reducing large orders. Electrical Steel production rates stayed consistent, with minimal growth observed in the sector. Supply remained stable, and inventories across the US were consistent, prompting mills to maintain prices. Demand from the Latin American market increased slightly, particularly from Chile's solar projects. However, domestic prices decreased later in July due to declining demand and surplus inventory, influenced by lower energy costs. A local interest rate hike further dampened demand in August, with buyers waiting for price adjustments. International economic policies and interest rate increases had a limited impact on Electrical Steel prices. Demand from the vehicle and construction industries remained sluggish due to external factors affecting prices. However, concerns about a potential United Auto Workers (UAW) strike impacted the downstream automotive industry, reducing Electrical Steel demand. Electrical Steel prices remained stable or increased as domestic policies supported power transmission upgrades. The market faced uncertainties in September due to maintenance outages and the UAW strike. The US Federal Reserve's policy decisions and global economic risks kept the market cautious and responsive to external factors.
APAC
The price of electrical steel in the Japanese spot market has experienced a decline due to reduced demand locally and globally. Economic conditions in foreign nations are weak, with countries like the USA and European nations raising interest rates to combat inflation. The Japanese automotive industry is grappling with fierce competition from Chinese and American manufacturers like Tesla, resulting in decreased demand. This led to a wait-and-see approach among buyers, slowing consumption and prompting local mills to lower prices to attract customers. Inflationary pressure has somewhat decreased but remains high, with a slower pace of cost growth since April, leading to a milder increase in sales prices. Confidence in the market has declined, but optimism remains relatively strong. Asia's steel demand revival has been hindered by China's zero-COVID policy and extreme summer weather conditions. Tokyo Steel reported that steel prices have fallen below profitability levels for many producers and have yet to reach the bottom. New orders, including exports, have sharply declined, and employment growth has slowed while unemployment has risen. Uncertain economic conditions have kept electric steel inventories high. Despite these challenges, confidence remains relatively high, suggesting a degree of resilience in the market.
Europe
Declining prices in the German electrical steel market in Q3 were initially buoyed by increased production and robust overseas demand from renewable energy and power transmission sectors. Higher output from Yunnan's silicon metal plants in China led to elevated inventory levels, but consistent consumption kept prices stable. Chilean demand grew as solar plants expanded, yet buyers resisted local manufacturers' price increases, maintaining stability. In July, a drop in European power demand negatively impacted electrical steel prices, partly due to slowed consumption in hydro and wind energy sectors. August brought further declines attributed to economic factors, an interest rate hike by the European Central Bank, reduced manufacturing during heatwaves, and low buyer confidence. International trade was restricted by rising interest rates. September saw continued price drops due to low demand in the automotive sector, resulting from worker strikes and oil and gas industry uncertainty. Prices remained stagnant in the third week of September, with a balanced supply-demand outlook. Moreover, the German steel industry advocated for a temporary "bridge electricity price" to ensure affordability for industrial users and support a climate-neutral industry, proposing its introduction in January 2024 and appealing to the European Commission.
For the Quarter Ending June 2023
North America
The price of Electrical Steel showed a downward trend in the second quarter of 2023 in the US spot market due to the weakening of the economic situation and the weakening of the downstream demand. With the collapse of several US banks in the second quarter, the US government had to face a pessimistic market situation due to the debt crisis. The weakening of the economy increased demand and supply. Buyers were left waiting for the situation as they were still waiting for the price to drop. The consumption rate decreased as the downstream construction sector showed a downward trend in the market, driving Electrical Steel inventories to higher levels in the US spot market. Production rates were higher as steel mills operated steadily despite weak demand. Market participants placed orders based on demand because they already had a prevailing supply, leading to lower US inventories. Local mills had to reduce the prices of electrical steel to receive large orders and improve the commercial situation.
Asia-Pacific
In China's spot market, the price of Electrical Steel showed a consecutive downward trend in the second quarter of 2023. The price continuously fell due to high inventory, as the production rate increased in Q2. The decline in Electrical Steel prices has created a pessimistic market sentiment in China, causing local consumers to delay placing large orders. The spot price ratio was affected by several factors, such as product quality, spot price arbitrage, and price differences between several local mills, which depressed the market price of electrical steel. Economic conditions weakened in the second quarter, which reduced electrical steel consumption in the downstream construction sector, as construction activity slowed due to the arrival of the monsoon season and heavy rains in various parts of China. The recession has caused buyers to hold back large orders as they expect prices to drop further in the coming months. Production rates remained higher as electric steel mills ramped up production during Yunnan's high-water levels. Declining consumption and a weakening economy have prompted local factories to lower their bid prices to increase business and get higher bids.
Europe
The price of Electrical Steel in the German spot market fell in the second quarter of 2023 due to weakening demand and an uncertain economic situation. The German spot market has faced a market downturn as the inflation rate accelerates while the German financial market moves toward recession. Final consumer demand in the construction industry fell as labor shortages across Europe weakened construction activity in the German spot market. At the same time, domestic inventory levels remained higher due to high production rates in both local and overseas Asian markets and lower utilization rates as buyers hesitated to place large orders as they expected the price to fall further. Demand was weak in the second quarter as downstream activity slowed mid-Easter. Major market participants have been less committed to destocking, as they already have enough electrical steel at lower activity levels. Mills have been advised to reduce the price of electrical steel to get more orders from local and international buyers in the German spot market.
For the Quarter Ending March 2023
North America
In the US market, Electrical Steel prices rebounded in the first quarter of 2023, owing to stable downstream inquiries from electromagnetic devices amidst turmoil in the financial market. As per market players, global macroeconomic and geopolitical factors emerged as the dominant forces shaping the Flat Steel industry. Steelmakers raised their spot offer prices in January, and some buyers reported available inventories of Silicon Steel in late February. Electrical Steel prices surged in mid-Q2 as mills continued to raise spot market offers, albeit at a slower pace. Steel imports declined, removing a significant source of supply that typically filled gaps when domestic supply was limited and prices rose. Steel mill utilization rates had been below 75% since mid-October, with manufacturers focusing on higher transaction deals with maintaining their bottom line amidst rising raw material waste costs and falling import offers. Silicon Metal prices reached a new low mark due to a weak microeconomic backdrop. Thus, the discussion of Electrical Steel (M15-C5) Coil for Ex Tijuana and FOB San Diego settled at USD 5520/MT and USD 5570/MT.
Asia Pacific
In the first quarter of 2023, the Chinese Electrical Steel market witnessed a rise in prices due to increased demand from downstream industries such as automotive manufacturing and power generation. Silicon sellers held firm on their offers as smelters stockpiled for winter, resulting in higher Silicon prices. While mainstream steel mills raised their prices, the sluggish purchasing willingness of downstream and terminal companies dampened the momentum of silicon steel spot prices in February. Some standard-grade silicon metals prices rose slightly due to active purchases by downstream buyers and traders. In March, transactions improved as a result of the loosening of downstream demand, resulting in a rally in silicon metal prices. The completion of Baosteel's non-oriented silicon steel product structure optimization project and the end of maintenance of some steel mills in northeast and north China led to increased weekly output, resulting in Electrical Steel (50 WW 800) Coil prices settling at USD 955/MT and USD 989/MT for Ex. Shanghai and FOB Shanghai, respectively.
Europe
During the first quarter of 2023, the German Electrical Steel market experienced an upswing in prices due to a bleak economic outlook and headwinds affecting Europe's manufacturing and construction industries. European flat steel producers had pushed for higher prices due to strong order books and high costs, while buyers had held back and assessed new offers. The EU's energy price situation had gradually returned to normal, while Silicon metal prices had been held back by low seasonal demand. In March, Electrical Steel prices had remained stagnant due to a wait-and-see attitude among buyers and weak demand, with German mills attempting to raise prices but the market remaining extremely quiet. The majority of the steelmaking capacity that had been idled in 2022 had been or would be restarted at the start of the second quarter, easing pressure on volumes. As a ripple effect, the discussion of Electrical Steel (50 WW 800) Coil for Ex. Ruhr and FOB Hamburg had settled at USD 2442/MT and USD 2500/MT, respectively.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Electrical Steel prices fell in the US market due to limited downstream demand from the steel and alloy segments and logistical concerns. Shippers loaded low weight on a barge in October because the Mississippi River's water level was low. Steel mill closures, limited production and maintenance, and slow replenishment all impacted demand. Furthermore, due to lower demand and less supply chain congestion, freight rates peaked during the quarter and began normalizing. Market participants reported little activity in the spot market as the holiday season approached. Premium level declines slowed in December, with reports of increased consumer inquiries - through the uncertain economic outlook for the first quarter remains a source of concern. A winter storm moving through Western New York also hampered logistics. The storm's aftermath and the disrupted supply chain resulted in limited downstream demand. In December, the price stabilized, but no one was rushing to buy from US mills rather than imports. Electrical Steel (M15-C5) Coil prices for Ex Tijuana and FOB San Diego settled at USD 5127/MT and USD 5193/MT, respectively.
Asia Pacific
Electrical Steel prices increased in the Chinese market in the fourth quarter of 2022, despite fluctuating raw material costs and COVID control and prevention measures. The social inventory of silicon metal in Huangpu Port, Kunming City, and Tianjin Port fell in October. Manufacturers had limited spot resources and were hesitant to sell at a low price. The pandemic has continued to disrupt the production of local silicon companies. Concurrently, the dry season in Sichuan and Yunnan has raised concerns about rising costs and production cuts in the fourth quarter. As overseas customers aggressively bargained down prices and the RMB appreciated against the US dollar, export orders were light in the overseas market. As downstream producers placed orders based on rigid demand, market trading improved slightly. As the pandemic control in Guangzhou eased in December, the shipment flow through Huangpu Port returned to normal levels. Some Dehong businesses ceased operations in late December 2022, while others cut back during the Chinese New Year. As a result, the price of Electrical Steel (50 WW 800) Coil for Ex. Shanghai was settled at USD 846/MT.
Europe
Electrical steel prices rose in the European market in Q4 2022, owing to the strong support from the cost side (semicoke, electricity, and transportation costs increased). Despite a decrease in supply and a shortage of inventory on the supply side in October, enterprises in the production areas resumed production and intake. Some buyers needed to restock, but they preferred to wait for the price to fall to its lowest point before replenishing for the first quarter of 2023. Electrical steel prices in Europe remained under pressure in November due to low demand and an oversupply of imported products. Manufacturers claimed that big buyers had left the market after booking needed volumes in mid-Q4 and that the market was slowing due to the approaching Christmas holidays. However, Electrical Steel prices surged in the last few weeks of December. The mills' bullish outlook was bolstered by several factors, including higher demand in December, expected to rebound further in mid-January; higher energy costs that steelmakers must cover; a lack of competitive import offers; and the effects of steelmakers' 2022 production cuts. As a result, Electrical Steel (50 WW 800) coil prices for Ex. Ruhr (Germany) settled at USD 2283/MT.
For the Quarter Ending September 2022
North America
In North America, Electrical Steel prices witnessed a rising trend in the third quarter of 2022, owing to the robust demand from the downstream sectors amidst rising shortages. Service centers continue to postpone stocking purchases, with any additional tonnes purchased only to meet demand. Companies have begun contract negotiations for 2023, with at least one source reporting a 4% price decrease for value-add tonnes. According to market participants, electrical steel prices in the United States have risen since July. Because consistent Russian deliveries are expected, the US and India purchased large quantities of ferrosilicon from Russia, but these cargoes are still on their way and have not yet arrived at their warehouses. Furthermore, because the amount of silicon imported from China is significant, the United States has expanded its import sources to include Canada, Brazil, Venezuela, Russia, and others. As a result, Electrical Steel (M15-C5) Coil prices for FOB San Diego (USA) settled at USD 9566/MT.
Asia Pacific
In the Asian market, Electrical Steel prices witnessed a declining trend in the third quarter of 2022 amidst the restriction of power supply. According to market participants, manufacturers in Sichuan have halted production, and shipment in Xinjiang has become a significant issue due to the outbreak of COVID-19. Electrical Steel prices fell in the Chinese market due to a weak demand outlook and increased domestic production activity despite increasing import offers. Due to high temperatures and monsoon rain in Southeast Asia, seasonal demand is weak, and steel offtake is low in the summer. Following the rapid and significant decline in supply, inventories also demonstrated a trend of rapid depletion. In terms of demand, firms were still in a downturn. So far, no significant progress has been made. High costs, low demand, and shrinking margins make life difficult for Chinese steel mills. As a result, Electrical Steel (50 WW 800) Coil prices for Ex. Shanghai (China) settled at USD 980/MT.
Europe
During the third quarter of 2022, Electrical Steel prices witnessed an unprecedented surge amid a subdued demand outlook and seasonal mill closures. Earlier in the quarter, market players cited that Steel manufacturers have started raising offers on surging costs, though it was unclear if the market could absorb that. According to market participants, several silicon-producing firms have scheduled outages in July due to rising energy and fuel costs. This shutdown, however, has resulted in severe shortages in the domestic market. Because of the low demand, Electrical Steel prices fell. Furthermore, supply chain disruptions and inflationary pressures persist, despite economic headwinds. Price increases had accelerated by the end of the quarter due to increased demand from European consumers and a severe shortage of available volumes. Malaysian plants, which account for up to 30% of regional consumption and more than half of imports, are idle due to the country's severe COVID-19 outbreak. Thus, Electrical Steel (50 WW 800) Coil prices for Ex. Ruhr (Germany) settled at USD 2210/MT.
For the Quarter Ending June 2022
United States
During the second quarter of 2022, the Electrical Steel prices witnessed an unprecedented surge primarily due to the demand-supply imbalance, supply tightness, and robust demand. As per market players, the Electrical Steel prices showcased a soaring trend over the last 18 months owing to the inflation over raw material prices and robust downstream demand amidst lower inventory levels. Some U.S. steel buyers warn that the raw material shortages are unlikely to resolve in the near term and potentially during the rest of 2022, significantly as steelmaking infrastructure is damaged or destroyed in Ukraine. Additionally, lack of availability of coal, as racks are not available for the supply of coal as most of them have been diverted for the power sector. As a ripple effect, rising inflationary pressure and soaring raw materials cost amidst limited inventories further exacerbated the market sentiments.
Asia Pacific
In the Indian market, Electrical Steel prices followed a downward trajectory due to fluctuating raw materials prices amidst the ongoing rivalries between Russia and Ukraine. In April, high demand from European nations forced Indian suppliers to increase their supplies. According to the market players, they have already piled up their stocks for May. Additionally, the Indian government has waived customs duties on importing some raw materials, including coking coal and ferronickel. The duty on iron ores and concentrates was raised to 50% from 30%, while the extended duty on iron pellets was roughly 45%. As per Indian authorities, steel export duties are flung to improve domestic supplies, putting downward pressure on pricing. The duty-driven cost correction improved the product's availability in the domestic market as finished steel exports dwindled. However, the Steel manufacturers attempted to skirt the duties by bumping up exports of alloyed steel and billets, which are unlikely to compensate for the loss of finished steel exports.
Europe
In the European market, the Electrical Steel prices witnessed a mixed statement. In April and May, the Electrical Steel prices upswing by 20%, owing to the robust demand from the end-users amidst solid inflationary pressure and the Russia-Ukraine conflict and its repercussions. As per traders, the need for Electrical Steel remained firm; however, the limited manufacturer offers raised the quotation prices. Additionally, the sale price level is still very high and profitable, based on restocking made early this year. Despite this rising trend, Electrical Steel prices dropped by 9% as demand was fragile in the market, and mills were willing to accept any counter-offers they received. As per market players, the weak demand and softening scrap prices pressurized the demand outlook and have resulted in lower transactions in the domestic market. As buyers held back from booking orders, European domestic steel section prices continued to soften on June 29, expecting prices to move down further.
For the Quarter Ending March 2022
North America
In the USA, the Electrical Steel prices witnessed a soaring trend owing to increasing raw material prices amidst the rising geopolitical tension in the Russia-Ukraine war. As per market participants, the demand for Electrical Steel remains steady and faces limited challenges from imports. Limited product availability and the increasing risk of procurement were the primary factors affecting the Electrical Steel prices in the regional market. Furthermore, decarbonization, Green Steel, and implementation of additional production cuts in China have increased the pressure on product availability. As a ripple effect, the price of Electrical Steel witnessed a skyrocketing trend during the first quarter of 2022.
Asia Pacific
After reaching record highs at the end of 2020, global electrical plate prices cooled significantly in 2021 and ended the year on a stable note, influenced by various factors such as supply-demand imbalance and the impact of raw material prices until January. However, during February, the Russia-Ukraine dispute, and its repercussions, especially on raw materials and logistics, and the recent spread of the COVID-19 pandemic in China, have impacted supply and demand dynamics. As per Chinese market participants, the general inflation of metal prices during the war and the lockdown in China has two-folded the impact on raw material prices. Additionally, the Chinese traders were worried about the disruption of supplies from Russia due to sanctions imposed by western nations amid the increasing pandemic in the eastern Chinese region.
Europe
During the Q1 of 2022, the Electrical Steel prices witnessed an inclining trend owing to the rising inflation rate, cost pressure, and soaring fuel and energy prices amidst the Russia-Ukraine war. The Russia-Ukraine conflict and its reverberations, particularly on raw materials and logistics, and China's significantly rising COVID-19 cases, impact supply and demand-side activities. As per the European market participants, the increasing risk of procurement, constraints of financial support, limited onloading and offloading activities, growing uncertainty about availability, and rising safety and security concerns are among the significant factors that have driven sentiments in the commodity markets worldwide. Additionally, the European Commission has revised its European Union steel import quota system to avoid regional market shortages following its ban on steel from Russia and Belarus due to those countries' actions in Ukraine.
