For the Quarter Ending March 2023
North America
In the North American region, the pricing trend for Stainless-Steel Round Bar varied over the three months in the first quarter of 2023. Initially, there was a stagnancy in the pricing trend for SS Round Bar due to consistent downstream inquiries. However, stocks available in the spot market increased significantly as stainless-steel factories increased product distribution. In February, the rates for SS Round Bar increased by more than 1.2% despite a lack of forward visibility and persistent recessionary concerns that continue to erode buyer confidence in the United States. However, the prices for SS Round Bar declined in March due to fewer spot sales or purchases owing to slow demand amid plentiful inventory available in the domestic market. Furthermore, weak orders from end-user industries were observed as they were wary of purchasing it at offered prices in such a volatile market. Therefore, prices of Stainless Steel Round Bar for Ex Philadelphia settled at USD 7480/MT on March 31.
Asia- Pacific
In the Asia-Pacific region, the price trend of Stainless Steel Round Bar declined in the first quarter of 2023 due to high inventory levels and subdued downstream demand. Market participants reported that both stainless steel and nickel prices fell during this quarter, which eased cost pressure on finished products. Stainless steel mills resumed production after the Chinese New Year holiday, but the increased production resulted in low demand and high inventory. Despite prices falling further in March, they were still higher than spot transaction prices, and buyers were waiting for further price drops. Spot transactions were slow, and overseas demand was weak, making it a difficult quarter for sellers. As a result, the price of the Stainless Steel Round Bar for Ex Dainan settled at USD 2468/MT on March 31.
Europe
In the European region, Stainless-Steel Round Bar showcased a mixed-price trend during the first quarter of 2023. Initially, the prices increased in Germany as the downstream inquiries and demand from service centers, and re-rollers were strong. There was positive momentum, but because so much restocking occurred in December, market activity was stable in January, especially with the Chinese New Year approaching. Also, a lack of competitive imports contributed to price increases. However, the prices approached a downward trend entering February as a result of declining demand and a lack of clarity over the direction of the market for stainless steel consumption. The trading in the European SS Round Bar market remained dull as purchasers had a wait-and-see attitude and avoided large bookings. Long-product stainless steelmakers were eager for sales amid high stockpiles, due to which they decreased the prices of SS Round Bar in the final month of a quarter. Therefore, prices of Stainless Steel Round Bar for Ex Ruhr settled at USD 3917/MT on March 31.
For the Quarter Ending December 2022
North America
Towards the closure of Q4, the Stainless Steel Round Bar prices showcased a declining trend in the US market owing to the higher inventory level and limited downstream demand outlook. In October, the downstream buyers remain observant of drawing down inventories across all products through the end of the year. With falling scrap prices, mills had tried to remain competitive with import offers as downstream demand from new projects had not warranted additional spot buys or bookings of more significant imports, along with rising financing costs. Participants in the US Stainless Steel market were optimistic about the new year, but spot prices remained lower than they were during the previous summer and fall seasons. This winter's activity has slowed significantly, but downstream work appears to be picking up for next year.
Asia Pacific
In the Chinese market, the Stainless-Steel Round Bar prices showcased a rising trend in the final quarter of 2022 owing to the lower inventory level and firm downstream demand amidst the COVID control and prevention measures. According to market participants, the upstream of stainless steel has decreased. The price of stainless steel increased due to the unexpected arrival in October following the festival, a shortage of some specifications, and the fermentation of raw material supply problems. With a minor adjustment, the stainless-steel market was mostly stable in mid-Q4. In some areas, epidemic prevention and control measures were tightened, and logistics and transportation were halted. Traders and downstream businesses waited and watched, only buying when necessary. Downstream demand was declining toward the end of the year, and market willingness to purchase was low.
Europe
Towards the end of the fourth quarter of 2022, Stainless Steel Round Bar prices in the German market displayed a mixed trend due to increased inventory availability and a limited downstream demand outlook. With price volatility on the rise, European steel producers were considering switching to shorter terms with fixed-price contract customers, particularly automakers. Mills attempted to harden their stance to save money. Buyers who ordered December delivery said the material was already available, with lead times as low as two weeks from several mills. Customers were taking a wait-and-see approach due to the current economic uncertainty, and even large buyers were purchasing in smaller quantities than usual. According to a large buyer, lower demand was caused primarily by prices remaining too high, given the significant slowdown in downstream activity. Some mills have stopped providing quotations and will re-enter the market in the first half of January. Domestic prices for SS Round Bar in Europe remained unchanged due to a market slowdown ahead of the Christmas holidays.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the Stainless-Steel Round bar prices rose in the US market amidst a sluggish demand outlook. Market players cite that US steel prices have been under significant pressure for most of 2022, driven by weakening downstream demand, conservative service center buying, and persistently high supply. However, rising signs of a recession had kept many buyers on the fence, fearful of being saddled with overpriced steel inventories if the downturn worsened. Furthermore, many buyers refused to make purchases that would increase their inventories and preferred to keep stocks tight rather than take risks in an uncertain market. Furthermore, in their most recent earnings reports, steelmakers indicated that they believe demand will remain stable or increase, citing persistent backlogs. Thus, SS 304 Round Bar (25 mm) prices for FOB New York Port (USA) settled at USD 10637/MT.
Asia
During the third quarter of 2022, the Stainless-Steel Round bar prices witnessed a mixed sentiment owing to the limited buyer inquiries. Buyers who had depleted their stockpiles booked even small quantities so that their products could continue. Most buyers awaited the tender price for September delivery from Chinese steel mills. As a result, the cost of ferrochrome has remained stable. With the festive season, India's stainless-steel mills returned to normal production levels. Stainless steel demand is typically higher in India during the festive season. However, the outlook from India's top export destination, China, remains unchanged. Small-scale buyers have been deferring purchases in anticipation of a lower price in the next round of purchase tenders from major stainless-steel round bar manufacturers since chrome ore prices have fallen. As a ripple effect, the SS 304 Round Bar (50 mm) prices for Ex Dainan (China) settled at USD 2331/MT.
Europe
The Stainless-Steel Round Bar market in the European market remained subdued, with essentially flat prices during the third quarter of 2022. Market participants noticed how the escalating energy crisis would affect the fourth quarter. Transaction prices, which had recently followed a similar trend to base prices, were assessed lower this quarter due to weak demand and oversupply. Distributors noticed more orders, but prices remained low. Suppliers mentioned a price bottom and some increases in September due to higher energy costs. In August and mid-September, energy prices rose by USD 100/MT daily, but distributors were waiting for orders. However, manufacturers reported at the end of September that European stainless steel bar demand returned to the market after a long period of stagnation during which prices fell and buyers purchased in small quantities. Therefore, SS 304 Round Bar (25 mm) prices for Ex Ruhr (Germany) settled at USD 4080/MT.
