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.
