For the Quarter Ending June 2022
In the US market, the Stainless-Steel CR Coil prices increased due to the lower inventory level and the decline in production activity. Because of the rising inflationary pressures and supply-chain disruptions, new orders fell. Firms augmented production activity with current holdings of inputs and finished goods as input purchases slowed and supply chain delays eased. At the same time, firms raised inflationary concerns once more as business confidence in the year ahead fell. As a result of inflation, material shortages, and delivery delays, some customers paused or reduced their purchases of goods, which was accompanied by a renewed decline in overseas buyer demand. As per market players, the manufacturing sector in the United States remains demand-driven, and supply-chain constrained. As a ripple effect, the prices of stainless-steel CR coils surged.
In the Indian market, the price of SS 304 CR Coil (2 mm) witnessed an upswing during the second quarter of 2022 due to the robust demand and higher nickel prices. As per domestic suppliers, manufacturers have passed hikes on the cost increase to end consumers, which has led to a dampening of demand, hurting the Steel industry further. In addition to rising materials costs, fluctuating exchange rates and rising operational costs are other factors driving price increases in the country following Production curtailment. Additionally, India imposes a 15% import tax on stainless steel coils and Aluminium extrusion, a further bullish factor for overseas stainless-steel exporters. Mills are working on other prospects to prevail in the export market amid the export duties. As per market players, several weeks of sturdy demand have kept domestic and export prices for stainless steel in India and import prices in East Asia stable. As a ripple effect, the SS 304 CR Coil (2 mm) prices for Ex. Chennai (India) settled at INR 320000/MT.
Stainless Steel 304 CR Sheet prices in Germany fell in the second quarter of 2022 due to a lack of domestic and international demand amidst higher inventory levels. According to market participants, Stainless Steel 304 CR Sheet prices fell roughly 30% in May due to cheaper Asian imports and much higher alloy surcharges, as well as a slowing economy and dwindling demand. The weak demand outlook from domestic mills and lower raw material costs, particularly nickel, exacerbated demand concerns and pushed Stainless Steel 304 CR Sheet prices down. Market participants believe that Germany is oversupplied and that flat CR stainless steel base prices remain under pressure due to weak demand. Faced with such weak fundamentals, several mills embarked on longer-than-usual maintenance turnarounds this summer. While the market is still under pressure due to a lack of direction, several market participants believe it will begin to recover in September. As a result, the Ex Ruhr (Germany) price for Stainless Steel-304 CR Sheet (2 mm) has been set at USD 1510/MT.
For the Quarter Ending March 2022
In the US, the Stainless Steel 304 prices appear moderate in the US market, with inventories and demand maintaining healthy levels during the first quarter of 2022. Despite the recent opening of mills, purchases have been sluggish as buyers tend to source as per their requirements, keeping the wait-and-see sentiment in the spot market. As per market participants, stainless steel 304 is stable in the US market, but higher prices are anticipated in the forthcoming weeks. Furthermore, rising prices in the Stainless Steel 304 market are cooling during March as the market adjusts to current realities and a possible slowdown in demand. While mills reportedly ask as much for further orders, several buyers report little buying activity at these levels. Thus, market players opted for a wait-and-watch outlook amid the stagnant demand.
The price of Stainless Steel-304 CR Coil in Asia increased during the first quarter of 2022 due to rising raw material prices, primarily nickel and iron ore. This upward trend is primarily supported by Russia's and Ukraine's ongoing hostility. However, the impact is doubled with the resurgence of COVID-19 cases in several Chinese cities. Because of the growing number of Omicron cases in China, authorities have suppressed onloading and offloading activities, increasing port congestion and traffic. Furthermore, rising coking coal and nickel prices have hampered steel production and exacerbated market dynamics for Stainless Steel-304 CR Coil. The price of Stainless Steel-304 CR Coil for Ex Shanghai settled at USD 2925/MT during Q1 of 2022 due to the ripple effect.
In Europe, the Stainless Steel 304 CR Coil prices witnessed an inclining trend owing to robust demand from the downstream sector. The Russia-Ukraine war and its ramifications, particularly on raw materials and logistics in China's significantly rising COVID-19 issues, have a dual impact on supply and demand dynamics. The rising procurement risk, financial constraints, and port bottleneck all increased Stainless Steel 304 CR Coil prices. However, increasing availability uncertainty and rising safety and security concerns are among the significant concerns. As per market participants, rising supply chain delays and input cost inflation due to stretched supply chains put inflationary pressure on raw material prices. As a ripple effect, the soaring raw material prices further provoked Stainless Steel 304 CR Coil prices to surge in the regional market.