For the Quarter Ending March 2024
North America
The North American market for Stainless Steel HR Coil in Q1 2024 experienced a stable pricing environment with moderate supply and demand dynamics. The region saw a minor downturn in prices compared to the previous quarter, primarily due to decreased demand from downstream industries and a decline in nickel prices. Despite expectations of production growth from domestic mills, weak demand from international markets weighed on Stainless Steel HR Coil prices. The US market showed more resilience compared to Europe amid economic challenges.
In the US spot market, there was a slight increase in the availability of Stainless-Steel HR Coils, coupled with a decrease in downstream demand. This high supplies of Nickel, a crucial raw material, contributed to the slight decline in prices. However, Canada Nickel's strategic initiatives to establish nickel and stainless-steel processing facilities aimed to strengthen the North American electric vehicle supply chain with sustainable technologies.
Overall, the pricing environment for Stainless Steel HR Coil in the North American market during Q1 2024 was negative, with prices experiencing a minor decline. The US market was more resilient compared to Europe, but weak demand from downstream industries and international markets weighed on prices. The stable supply and moderate demand dynamics contributed to the overall stability in the market. The quarter-ending price for Stainless Steel-304 HR Coil (5 mm) CFR Alabama Port in the USA was USD 3049/MT.
APAC
In Q1 2024, the Stainless-Steel HR Coil market in the APAC region experienced a mixed pricing environment. Overall, market prices remained relatively stable, with some fluctuations observed in China. Several factors influenced market prices during this quarter. One significant factor was the decreased demand from downstream industries, particularly the automotive sector. Sluggish economic recovery and geopolitical instability in developed nations like Europe and the United States led to a shift in consumer spending preferences from goods to services, resulting in decreased imports and alterations in trade dynamics. This reduced demand for Stainless Steel HR Coil, leading to cautious behaviour among buyers in the Chinese spot market. Another factor impacting prices was the rise in domestic inventory levels. Reduced consumption both domestically and internationally in China, coupled with a surge in the influx of Stainless-Steel products during the Chinese New Year holiday, led to a notable increase in inventory levels. This increase in supply contributed to the bearish market sentiment. In conclusion, the pricing environment for Stainless Steel HR Coil in the APAC region during Q1 2024 can be described as negative to stable. While there were fluctuations in prices, overall market conditions remained challenging due to reduced demand and increased supply. The quarter-ending price for Stainless Steel-201 HR Coil (3 mm) Ex Shandong in China was USD 1070/MT.
Europe
In Q1 2024, the Stainless-Steel HR Coil market in Europe experienced a mixed pricing environment, with Germany being the most affected. The overall trend for Stainless Steel HR Coil prices slight increases, with some fluctuations influenced by various factors. One of the factors that influenced market prices was the supply disruption in Europe. Operational issues and prolonged industrial disputes at key manufacturing plants, such as Acerinox's Los Barrios and Outokumpu's Tornio sites, led to reduced production rates across European mills. This tightened supply constraints and strained inventory levels and extended lead times, resulting in price increases. In Germany specifically, Infrastructure projects and construction activities drove the demand for Stainless Steel HR Coils. However, the increased demand exacerbated supply-demand imbalances, intensifying competition for available supply, and putting pressure on prices. Overall, the pricing environment for Stainless Steel HR Coils in Europe (Germany) increases. The market faced challenges in supply disruptions and increased demand, leading to supply-demand imbalances. Looking ahead, addressing supply chain disruptions, and boosting production capabilities will be crucial to stabilize the market and ensure its resilience. The latest quarter-ending price for Stainless Steel-HR Coil (5 mm) Ex Ruhr in Germany was USD 2477/MT.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American market for Stainless Steel HR Coil experienced a stable trend amidst several macroeconomic factors resulting in uncertain sentiments in the US spot market. In October 2023, US stainless-steel HR Coil prices were elevated due to increased demand from the chemical and automotive sectors, compounded by limited upstream material supplies. Factors such as rising US bond yields, a robust ISM industrial index, and failed negotiations between the EU and the US in a steel dispute influenced the market.
However, in November, prices declined as production rates rose, and downstream consumption decreased. Outokumpu's expansion plans increased supply, and surpluses in feedstock persisted. In December, US spot market prices declined due to increased inventory levels and reduced demand from downstream sectors during the winter holidays. Despite challenges, the global Nickel mining industry grew, with the Minnesota Copper-Nickel Mining project playing a significant role.
US Stainless Steel HR Coil industries redirected investments from Brazil to China to enhance international competitiveness. Winter weather and uncertainty about government policies, interest rates, and the electric vehicle sector contributed to subdued demand in the US spot market. The price of Stainless Steel-304 HR Coil (5 mm) CFR Alabama Port in the USA for this quarter is USD 3046/MT. Please note that no plant shutdown was observed during this quarter.
Asia-Pacific
The APAC region's Stainless Steel HR Coil market experienced a plunging trend throughout the last quarter of 2023, amidst various factors influencing prices. Firstly, In October, the Chinese spot market experienced a decline in Stainless-Steel HR Coil prices, influenced by a shift in international demand towards the southern direction. Anti-dumping duties in the US and European markets, uncertainty about steel scrap and Nickel availability in Chinese warehouses, and a scarcity of steel scrap led to decreased prices. The US imposed duties contributed to a decreasing price trend, and a generally pessimistic sentiment reduced Stainless-Steel HR Coil prices across Chinese provinces. Later in the quarter, a decline in prices was attributed to increased Nickel supply, reduced consumption, and the cost-effectiveness of using recycled materials in manufacturing Stainless Steel HR Coils. In December 2023, the Chinese spot market demonstrated price stability despite decreased demand globally. Adverse weather conditions and increased global Nickel supply impacted Stainless Steel HR Coil prices. The IPO of Tsingshan Holding Group's battery subsidiary and concerns among Chinese miners in Indonesia further influenced Nickel prices. Disruptions on the Red Sea route and lowered demand during holidays affected US and European orders in the fourth quarter. The latest price for Stainless Steel-201 HR Coil (3 mm) Ex Shandong in China for the last quarter is USD 1109/MT.
Europe
In the fourth quarter of 2023, the European stainless steel HR coil market experienced stability in the price trend. In October 2023, the German spot market experienced an uptick in prices for Stainless Steel HR Coil, attributed to increased demand from the automotive and chemical sectors. This rise in demand, coupled with a decrease in raw material supply, became apparent as production rates declined. Consequently, global and domestic inventory levels for steel scrap and Nickel pig iron saw a reduction. The EU Carbon Border Tax, launched on October 1, faced initial challenges, leading EU steelmakers to advocate for strengthening the export ban on EU ferrous scrap. Concerns about the future availability of ferrous scrap were raised by EUROFER. Efforts to promote large-scale green Direct Reduced Iron production were halted, while consumer stocks in the UK remained resilient. Despite a recent market slowdown, UK companies in consumer-related sectors, such as retailers, construction firms, and travel and leisure, demonstrated resilience. Claims of circumvention against stainless steel products from Turkey, Taiwan, and Vietnam were deemed weak, signaling concerns about self-interest among EU steel producers amid uncertainties surrounding the Carbon Border Adjustment Mechanism (CBAM) in the German spot market. The latest price of stainless-steel HR coil (5 mm) ex Ruhr in Germany for the last quarter is USD 2359/MT.
For the Quarter Ending September 2023
North America
In the third quarter, the US stainless steel hot-rolled coil market saw declining prices due to multiple factors. Local inventories increased, and a boost in feedstock availability led to falling prices. Raw iron ore prices dropped due to expanded output in Australia and Indonesia, along with lower coking coal and fuel costs. The US Federal Reserve's interest rate hike added to the bearish outlook, affecting both domestic and foreign orders. Upstream steel production increased slightly, resulting in a surplus of crude steel. Competition from the thriving Chinese electric vehicle industry intensified for US automakers. There was an abundant supply of stainless-steel HR coils, and weak demand persisted due to various challenges, such as Russian sanctions affecting energy supply, OPEC export restrictions, the ongoing UAW strike, and the Federal Reserve's interest rate stance. Feedstock nickel supply increased in the US spot market due to issues at Norilsk Nickel and the Avebury nickel mine's sale in Tasmania. Concerns grew due to decreased demand from the oil and gas sector, energy supply shortages, and an extended OPEC reduction timeline. The market's uncertainty following the Federal Reserve's announcement led to caution among local and international buyers, with the UAW strike further reducing consumption.
Asia-Pacific
In Q3 2023, China's Stainless-Steel Hot Rolled Coil (HR Coil) prices saw a significant downtrend, driven by a complex interplay of supply and demand factors. On the supply front, China's boost in stainless steel and nickel production was noteworthy, notably with Tsingshan Group's new nickel production facility in Indonesia, Zhejiang Huayou Cobalt Co.'s emergence as a global nickel supplier, and expansions by Huzhou Jiuli Stainless Steel Material Co. and Zhejiang JIULI Hi-tech Metals Co. This resulted in an oversupply of HR Coils and nickel. Conversely, demand from domestic and foreign sectors, including construction and automobiles, slumped due to economic uncertainties and environmental concerns. This weakened market dynamics. Consequently, Chinese Stainless Steel HR Coil prices tumbled in the spot market. Manufacturers struggled to stabilize prices, but the oversupply and dwindling demand proved challenging. In summary, Q3 2023 witnessed a sharp decline in China's Stainless Steel HR Coil prices, attributable to a surge in raw material supply, increased production, and reduced demand from domestic and international industries.
Europe
In the third quarter, the stainless-steel hot-rolled coil (HRC) market in Germany experienced a plunging trend in price due to the limited demand from various industries and an increase in local inventory levels. This was primarily seen in the automotive sector, which faces fierce competition from foreign manufacturers, including Tesla. Despite efforts by the automotive industry to rejuvenate the electric vehicle sector, progress was slow, and both domestic and international buyers adopted a cautious approach, anticipating price drops. The supply in the German spot market marginally increased as production stabilized, driven by reduced consumption in the downstream automotive sector. As demand continued to decrease, the inventory levels remained elevated. The lackluster demand persisted as buyers hesitated to place substantial orders, hoping for further price reductions. This demand slump in the downstream auto industry, exacerbated by strong competition from foreign manufacturers like Tesla, led to decreased interest in flat stainless-steel products. The prevailing market conditions thus reflected a challenging landscape for stainless steel HRC in the third quarter, marked by low demand, high inventories, and hesitant buyers.
For the Quarter Ending June 2023
North America
The price of Stainless-Steel HR Coil showed a diminishing trend as the declining economic condition was presented as its major cause. The economy of the USA declined in the second quarter amid the decline of major banks across the USA which caused the debt crisis. The rising inflation rate and increase in interest rate made the market sentiment pessimistic. The plunging economic state reduced the buying capacity of buyers and led to an increase in local Stainless Steel inventory levels. The initial phase of Q2 was having a sustainable rise in the price of Stainless-Steel HR Coil as the Feedstock Nickel price rebounded. The Us mills kept the base price high, and the addition of the alloy surcharge caused an increased price trend for the US spot market. The market condition worsened in the H2 of the second quarter as the consumption from the downstream automotive sector remained at a lower edge. The buying capacity of customers declined as the inflation rate hiked, leading to sales of minimal vehicles. The labor shortage in the USA promoted the lower activity rate in the construction sector and hence reduced the Stainless-Steel HR Coil demand. The overseas Chinese Stimulus bets declined the price of feedstock commodities such as iron ore and the NPI in the global and US spot market. The buyers were shying away to place large orders which provoked the local mills to dampen their offer prices.
Asia-Pacific
In the Chinese Stainless-Steel market, the price of Stainless-Steel HR Coil declined in the second quarter of 2023. In the initial phase of the second quarter, the price hiked in April amid rebounding feedstock Nickel prices. The market conditions were better and the Stainless-Steel manufacturing units were gaining profits. The declining inventory level of feedstock Nickel and raising funds in the Chinese market helped to create an optimistic market sentiment that favored the price to rise. The price of Stainless-Steel scrap was rising which put a better market in front of the local Chinese mills. In the H2 of the second quarter, the price trend plunged, and the price of Stainless-Steel HR Coil ended up at a declining pace. In May, the macroeconomic factor concerning the rising inflation rate along with the economic uncertainty created a bearish market sentiment for Stainless Steel HR Coil. The production rate in the Stainless-Steel mills was high as the Liyang Stainless Steel mill planned to increase its billet production capacity. The economic instability and regional holidays across China resulted in reduced construction activity in the Chinese spot market. At the quarter end, the Chinese government implemented various stimuli to uplift their economic situation. According to major market players, the buyers remained in a wait-and-watch situation that provoked the local mills to reduce their offer prices.
Europe
The European Stainless-Steel HR Coil price declined in the second quarter as the downstream construction and automotive industry showed a pessimistic market sentiment. The economic condition of Germany degraded as Germany enters a recession. The downstream construction activity across the German spot market was adversely affected by the depriving economy. The rising inflation rate coupled with the increased cost of feedstock material for construction created a pessimistic market sentiment. Meanwhile, the labor shortage became a major concern as the worker's organizations went on protest in front of the Belgium headquarters raising the concern of equal payment as the workers appointed by the local contracting companies were paid less. They appealed for the start of a centralized recruitment process for workers in all construction and building industries. Furthermore, the downstream automotive industry was deprived in the German spot market as the major car companies such as Nissan and Kia shut down their plants at various locations across Europe as the declining economic condition reduced the buying capacity of customers and sales of vehicles got plunged in Germany. The customers were hesitant to place large orders as the market sentiment got uncertain, this provoked the local mills to reduce their offer price for Stainless-Steel HR Coil across Germany.
For the Quarter Ending March 2023
North America
In the North American region, the pricing trend for Stainless-Steel HR Coil varied over the three months in the first quarter of 2023. In January, there was a stagnancy in the pricing trend for Stainless-Steel HR Coil due to limited downstream inquiries amidst occasional import deals. However, stocks available in the spot market increased significantly as stainless-steel factories increased product distribution. Service centers continue to manage their inventories, attempting not to accumulate large stocks as the US economy's trajectory remains uncertain after the first quarter. In February, the rates for Stainless-Steel CR Coil increased by more than 1.6% despite an inconsistent supply-demand outlook and shifting raw material costs. However, high US prices made lower-cost imports more alluring, resulting in increased imports of some stainless-steel goods. In March, the prices for Stainless-Steel HR Coil depressed due to low demand amid plentiful inventory available in the domestic market, and mills issued no new formal price increases. Weak orders from end-user industries were observed as buyers were wary of purchasing it at high prices in such a volatile market. Therefore, prices of Stainless Steel HR Coil for Ex Florida settled at USD 3654/MT on March 31.
Asia- Pacific
During the first quarter of 2023, the price trend of Stainless Steel HR Coil edged in a southward direction in the Asia-Pacific region due to high inventory levels and subdued downstream demand. According to market participants, both stainless steel prices and nickel prices fell in this quarter which weakened the cost pressure on the price of finished products. After returning from the Chinese New Year Holiday, Stainless-steel mills resumed their production following the temporary shutdown of plants; however, increased production resulted in dampened demand, and the stainless-steel inventory continued to grow. Although prices fell further in March, they remained higher than spot transaction prices, and the majority of buyers were waiting for more price drops. Spot transactions were also slow, and overseas demand was weak. Overall, Q1 was a challenging quarter for sellers. Therefore, prices of Stainless Steel HR Coil for Ex Shandong settled at USD 1395/MT on March 31.
Europe
In the European region, Stainless-Steel HR Coil maintained an overall stable price trend during the first quarter of 2023. In January, the pricing trend was stagnant due to the stable supply-demand outlook and higher inventory levels in the regional market. Buyers preferred to avoid stockpiling material and booked only the minimum required volumes, limiting trading activity. In February, prices increased by more than 1% owing to the robust downstream demand, and several big stainless-steel producers expected higher shipments in the first quarter of 2023. However, in March, the prices approached a downward trend as the market was under the pressure of weakening demand and uncertainty about the future outlook for Stainless Steel consumption. The trading continued to be a lull as buyers maintained a wait-and-see attitude. Flat-product stainless steelmakers were eager for sales, due to which they decreased the prices of Stainless Steel HR Coil in the final month of a quarter. Therefore, prices of Stainless Steel HR Coil for Ex Ruhr settled at USD 2670/MT on March 31.
For the Quarter Ending December 2022
North America
Stainless Steel HR Coil prices remained stable in the US market during the fourth quarter of 2022, owing to limited consumption from the downstream segment. At the start of the Q4, mill margins in the United States were under pressure due to rising input costs and the ongoing push to use more scrap in furnaces and incorporate more obsolete grades into the mix. Mills maintained their margins, but they had to give as spot prices fell, despite scrap dealers and traders stating that the shredded scrap premium to prime grades was not sustainable beyond November. Buyers were focused on reducing inventories across all products through the end of the year, keeping them out of the spot market due to shorter lead times from domestic mills versus longer lead times for imports. Despite falling scrap prices, mills attempted to remain competitive with import offers, as downstream demand from new projects did not warrant additional spot buys, bookings of larger imports, or rising financing costs. Despite months of similar incidents and price increases, manufacturers and some service centers believed the market was finally approaching an absolute bottom.
Asia Pacific
In the Chinese market, the Stainless Steel HR Coil prices showcased a declining trend in the final quarter of 2022 due to a limited downstream demand outlook and production curtailment by major manufacturers. In some areas, epidemic prevention and control measures were tightened, and logistics and transportation were disrupted. In response to supply and demand, upstream nickel prices rose and fell sharply, while stainless steel prices remained relatively stable. Traders and downstream businesses waited and saw, buying only when necessary. Downstream demand was declining toward the end of the year, and market willingness to purchase was low.
Europe
Towards the closure of Q4, the Stainless Steel HR Coil prices showcased a stagnancy in their price trend in the European market amidst a fixed downstream demand outlook and higher inventory level. Buyers who ordered December delivery said the material has been readily available, with lead times as low as two weeks from several mills. Customers are putting off purchases. Buyers reported that terminal demand had remained relatively stable, and distributors began restocking in November, indicating that inventories had been depleted. The restocking did not involve any large cargoes, and increased distributor demand did not affect prices. Buyers claim that the demand crashed, and until recently, the market was weighed down by high inventories and low actual demand to the point where most European stainless mills initiated some production cuts. According to sellers, domestic prices for SS Hot-rolled coil in Europe remained unchanged due to a market slowdown ahead of the Christmas holidays.
For the Quarter Ending September 2022
North America
The SS HR Coil prices in the North American market witnessed a plunging trend in the third quarter of 2022 amidst a conservative demand outlook. As per market players, US SS HR Coil prices have been under significant pressure due to weakening downstream demand, cautious service center purchasing, and persistently high supply. Fears of being saddled with overpriced steel inventories had kept many buyers on the sidelines as signs of a recession had emerged, including two consecutive quarters of negative growth and weakened manufacturing and housing indicators. Cleveland-Cliffs operated a blast furnace at its Cleveland, Ohio, mill entirely used by August to capitalize on rising automotive demand. As a ripple effect, the Stainless Steel-304 HR Coil (5 mm) prices for Ex Florida (USA) and CFR Alabama Port (USA) settled at USD 4009/MT and USD 3860/MT, respectively.
Asia
In the Indian market, Stainless-Steel HR Coil prices witnessed a declining trend in the third quarter of 2022. Buyers had taken a wait-and-see approach, waiting for the precise price picture to emerge. On the other hand, spot traders were primarily cautious, waiting for more precise price directions. Stainless-steel spot transactions were relatively low, while demand in the downstream market fluctuated, but prices remained reasonably stable with minor dips. Furthermore, domestic producers were uninterested in export inquiries because seaborne buyers wanted the material at lower prices. As a result of the disparity between bids and offers, producers turned to domestic markets. Prices also stayed within the range. However, due to a lack of supply, some major producers have increased their offers but have yet to find market acceptance. Thus, the discussions for Stainless Steel-304 HR Coil (5 mm) prices for CFR JNPT (India) settled at USD 2461/MT.
Europe
In the third quarter of 2022, the price of Stainless-Steel HR Coil fell. Buyers had purchased only small quantities based on demand. While producers worldwide shut down plants due to high energy costs, buyer demand surged between August and mid-September. Steel manufacturers reduced their offers below production costs due to rising energy costs and falling demand. Several manufacturers had announced outages to secure adequate orders and profits. Downstream demand fell in the third quarter as buyers were already overstocked and avoided further purchases. Buyers initially requested additional discounts after manufacturers reduced their quotation costs. The Stainless-Steel market in Germany remains subdued and with largely falling prices, but buyers opted for a wait-and-see approach until there was more clarity on costs. Thus, during the end of the third quarter, Stainless Steel-HR Coil (5 mm) prices for FOB Hamburg (Germany) settled at USD 2854/MT.
For the Quarter Ending June 2022
North America
In the US market, the Stainless-Steel HR Coil prices witnessed an upsurging trend in the second quarter of 2022. Since late March, the global market has lagged as Covid-19 lockdowns in parts of China, the conflict between Russia and Ukraine, and spiraling inflation have increased demand outlook uncertainty in 2022. Despite a significant increase in output, iron and steel producers struggled to keep up with demand and depleted stockpiles. Despite a substantial rise in production, iron and steel producers struggled to keep up with demand and depleted stocks. The steel industry is facing new challenges, and supply chain issues will persist throughout 2022. With roughly 60% of US pig iron (an essential input for steel production) imported from Russia and Ukraine, supply will be further restricted due to the Russian-Ukrainian war and subsequent sanctions.
Asia Pacific
In China, the Stainless-Steel HR Coil prices fell by about 12% in the second quarter of 2022. Under the influence of the epidemic, weak demand, and hindered logistics, the social inventory of stainless steel piled up in April. High overseas prices and the currency's devaluation further promoted stainless steel exports. Traders who were initially optimistic about the purchase demand before the May holiday became increasingly pessimistic due to the repeated epidemic. Raw materials are in short supply, but the market inventory is too large, and the downstream demand is relatively dissatisfied. In May and June, raw material costs were high, downstream demand was weak, and stainless-steel prices were in a dilemma. Steel mills were at a loss; the actual downstream purchases were relatively small, mainly based on rigid demand, and the volume had not increased. According to sellers, the transactions in the second quarter were still worse than in Q1.
Europe
Stainless Steel HR coil prices in Europe showcased a mixed sentiment in the second quarter due to monthly alloy surcharges on nickel-bearing stainless steel flat-rolled products in Europe. Following last month's extreme volatility in the nickel futures market, these are expected to rise sharply in May. Steel prices in Europe are falling as weakening manufacturing demand combines with inventories replenished following Russia's invasion of Ukraine. The drop comes as Europe's economy slows, with high commodity prices and inflation crimping consumption across the continent. After the war caused concern about disruptions in steel exports from Russia and Ukraine, service centers and factories rebuilt stockpiles, reducing the need for consumers to buy products at historically high prices.
For the Quarter Ending March 2022
North America
Stainless Steel HR Coil prices in the United States increased during the first quarter of 2022. The US Stainless Steel HR Coil prices witnessed a downward trend in January. However, in February, the prices of Stainless-Steel HR Coil rose again due to supply shortages. In March, Stainless Steel HR Coil prices in the US market reached an all-time high, rising by more than 8% monthly. Additionally, the downstream demand from the construction industry for Stainless Steel HR Coil was average as the resumption of production activity started after the pandemic. As per market participants, the Russia-Ukraine war has exacerbated the price volatility in the global market.
Asia Pacific
During the first quarter of 2022, the Stainless-Steel HR Coil prices in the Asian market witnessed an inclining trend owing to the shortages of raw materials amidst the ongoing Russia-Ukraine Hostility. Since the beginning of Q1, the Stainless-Steel HR Coil prices in the Chinese market had been weak, even though prices were rising slightly. Additionally, towards the end of March, its buying sentiment was still weak due to the soaring price dynamics. The demand was slow due to the pandemic and poor downstream purchasing. Upswing raw material costs further upsurged the Stainless-Steel HR Coil prices as a ripple effect.
Europe
In the European market, the Stainless-Steel HR Coil prices witnessed an inclining trend primarily due to the extending Russia-Ukraine combat and its repercussions, particularly on raw material and logistics. As per market participants, the prices of the raw materials, especially nickel, surged more than 30% in the global market. The European Stainless Steel CR Coil prices surged due to a host of factors such as stretched supply chain, sanctions on Russian raw materials, coupled with the falling exchange-rate value of the rouble, and Russia’s removal from the Swift international payment method have led to a swell in Stainless-Steel HR Coil prices. As a ripple effect, the Stainless-Steel HR Coil prices soared in the global market.
