For the Quarter Ending December 2024
North America
The North American Electrolytic Chromium Coated Steel market reflects pricing challenges in the fourth quarter of 2024 declining quarter on quarter, with the USA exhibiting the most significant fluctuations. Prices steadily declined throughout the quarter reflecting a negative pricing trend quarter on quarter environment shaped by multiple compounding factors.
Weak market fundamentals and sluggish trading activity largely influenced the downward trajectory. Additionally, demand from core industries like construction and automotive remained subdued, adding to the pressure on pricing. An oversupply situation, coupled with limited disruptions, ensured a consistent availability of materials, but this failed to align with declining demand levels, further weighing on prices.
The USA market faced additional challenges in increasing exports and geopolitical uncertainties that disrupted overseas demand. Nevertheless, seasonality also played a role, with prices showing a steady downward momentum between the first and second half of the quarter. Adding to these adversities, the North American market showed challenging conditions, bolstered by weak industry fundamentals and the region’s increase in capacity.
Europe
The fourth quarter of 2024 proved challenging for the European Electrolytic Chromium Coated Steel market, with prices showing a decline from Q3. Closing the quarter in Germany, the market experienced pronounced bearish sentiment amid a combination of global and regional adversities. Additionally, global supply chain disruptions, coupled with localized challenges such as subdued demand from crucial industries like construction and automotive, were key drivers of the downward trend. Regulatory changes implemented by the European Union further complicated matters, introducing additional pressures that intensified market instability. Moreover, Germany endured the steepest price drops within the region, reflecting the broader economic challenges that impacted Electrolytic Chromium Coated Steel demand. Additionally, seasonality played a notable role in market trends, with prices consistently declining throughout the quarter on quarter as weaker market conditions aligned with reduced industrial activities in the latter half of the year. Despite industry efforts to stabilize the market, the prevailing environment remained uncertain and marked by shrinking demand and excess supply concerns.
APAC
The fourth quarter of 2024 marked a challenging period for the APAC European Electrolytic Chromium Coated Steel products market, concluding at USD 820/MT for Electrolytic Chromium Coated Steel FOB Shanghai (China), representing a 5% decline from Q3 2024. This downward trajectory reflects a complex interplay of market fundamentals, economic conditions, and regional dynamics. The Chinese market, being the primary price influencer in the APAC region, experienced pressure from multiple directions. Supply chain disruptions coincided with significant demand weakness in key end-use sectors, notably construction and automotive. This combination created a perfect storm for price depression, with oversupply conditions exacerbating the downward pressure on market prices. Additionally, market sentiment remained predominantly bearish throughout the quarter, influenced by broader economic uncertainties and the disrupted normal trading patterns. The expansion of production capacities in certain regions, coupled with subdued demand, further contributed to the oversupply situation, preventing any meaningful price recovery. Looking forward, while the current price levels reflect significant market corrections, the underlying fundamentals suggest that recovery might be gradual, dependent on improvements in demand-supply dynamics and overall economic conditions.