For the Quarter Ending December 2022
During the fourth quarter, the price of Steel Rebar remained unchanged. Market participants witnessed slow orders as construction companies completed their backlogs and less competitive foreign prices. Concerns were mounting as the market became more pessimistic as thanksgiving and Christmas approached in the United States, and most service centers had reported a decline in downstream demand. To keep up with reducing import prices, Steel rebar makers lowered the prices, which were also driven down by both a dull US demand for foreign capacity in 2023 and decreasing raw material costs. The outlook for domestic demand was cautiously positive, according to market sources, and was driven by increasing infrastructure investment. However, the festive holidays and snowstorms hampered the supply chain towards the quarter's end.
The prices of Steel Rebar port showcased mixed sentiments throughout the fourth quarter as the raw material prices after declining. Some raw materials recovered at a low level upstream, and the price of scrap somewhat recovered towards the quarter end. Due to declining inventory levels, Steel Rebar prices increased in the Chinese market as raised infection cases and staff shortages hampered the supply chain. On the upstream side, coke stabilized, and the cost of scrap steel climbed and fell in tandem, maintaining stability overall. Demand decreased month after month while the seasonal impact grew in the regional market. However, during the customary off-season, demand was low. In December, the effects of the off-season become more pronounced. Profit reductions caused a further decrease in steel production.
Overall market prices of Steel Rebar in the European market followed the declining trend on the back of weak demand and sufficient inventories to cater to the domestic market. Leading steel mills around the nation also dramatically changed their factory prices, which led to a spike in spot prices for domestic companies. Additionally, the raw material trend was stable, offering spot items in the short run substantial support. The European market had high inventories as consumers competed with manufacturers. The pricing stayed within the stable range in the mid-quarter. To balance demand and supply, steelmakers went under early blockages for the Christmas holidays. Manufacturers of steel rebar plan to halt output for maintenance before starting it up again in the upcoming quarter.
For The Quarter Ending September 2022
During the third quarter of 2022, Steel Rebar prices witnessed a fluctuating price trend in the North American market. Steel rebar prices in the United States continued to fall in July and August 2022 due to a demand-supply imbalance, despite an inflow of imports and steadily falling raw material prices. According to suppliers, US Steel Rebar prices remained broadly stable in September as import prices increased as the construction industry remained active. Furthermore, it was reported that overseas producers faced higher costs. Energy prices in Europe and Turkey have risen due to a reduction in the Russian natural gas supply. Steel rebar prices have fallen due to service centers delaying purchases due to weak consumer demand, which has been exacerbated by labor and part shortages. Fears that the United States is already in or on the verge of a recession have also reduced purchases. As a ripple effect, the Steel Rebar (8 mm) prices for Ex-US Midwest (USA) settled at USD 1014/MT.
Steel Rebar prices in the Indian market fell by more than 10% during the third quarter of 2022 owing to low buying interest and limited spot transactions. According to market participants, Steel Rebar prices in India appear to have bottomed out, and further declines are unlikely while emerging green shoots of demand are expected to support costs in the year's second half. The 15% export tax on steel products imposed in late May, combined with low global demand, has kept shipments in check, while imports have increased in response to lower-cost offers from Russia and South Korea. Steel rebar prices fell due to a drop in raw material prices, such as sponge iron and steel billets, as well as a lack of buying inquiries despite high discounts. Furthermore, domestic trade was limited, with falling prices in the northern region. In turn, limited spot trades and softened offers were observed in key locations. Participants are divided about the demand outlook. As a result, they are waiting to take positions for future bookings. As a ripple effect, the Steel Rebar (8 mm) prices for Ex Delhi and Ex Mumbai settled at INR 57650/MT and INR 55750/MT.
In the European market, Steel Rebar prices witnessed a downward price trend in the third quarter of 2022 amidst the limited transaction in the regional market. As per market players, Steel Rebar prices remained depressed in the European market because of weak demand, most awaiting a wait-n-watch policy, low transactions, surging energy costs, and seasonal maintenance drive. After the August holiday break, some private residential construction companies have not re-opened and are putting new projects and building sites on hold. Some construction contractors prioritize the most profitable building sites and wait for prices to go down for others. Public projects are also slowing because of the sharp increases in all construction raw materials such as steel, timber, and cement. A steel buyer noticed that when rebar prices decreased in the past, clients resumed ordering. Demand is still there, but new price increases continue to slow the market. As a ripple effect, the Steel Rebar (HRB400 - 8 mm) prices for Ex Shanghai settled at USD 1020/MT.
For the Quarter Ending June 2022
During the second quarter of 2022, North America's US Steel Rebar market experienced mixed sentiments, with prices exhibiting minor fluctuations, steady demand, and imports posing a few issues. Although Steel Rebar distributors and traders were more optimistic about stockpiles than in the past, supply remained limited, especially in Florida. Mills has announced steel rebar pricing increases to keep up with imports and freight rate increases, as even imports face increased port congestion and transportation charges from the ports. Domestic producers also have little incentive to accept lower prices. Although import prices have continued to fall, large purchases have not been made. Market participants say production and new orders have slowed while work backlogs have grown. Meanwhile, cost inflation has accelerated, forcing businesses to pass on higher costs to customers through near-record increases in production rates. Due to the ripple effect, steel Rebar prices for Ex-US Midwest settled at USD 1105/MT.
During the second quarter of 2022, the Steel Rebar prices witnessed a slightly declining trend in the Asian market owing to several factors, such as increasing geopolitical tension, supply-chain disruptions, rising inflationary pressures, and COVID-19. As per Chinese market players, Steel Rebar prices saw limited growth, with movements and sentiments affected by rising COVID-19 cases. The Russia-Ukraine war and its many-sided repercussions, particularly on logistics and raw materials, coupled with the significantly rising COVID-19 cases, have two-folded the impact on supply and demand-side movements. Additionally, India increased export duties on bars by 15%, effective May 22, to mitigate the sharp increase in domestic rebar prices. As per market players, export mills have diverted products overseas to domestic markets, resulting in increased supply. The Shanghai administration has successively approved the resumption of some critical projects that involve construction activity. As a ripple effect, the Steel Rebar (HRB400-8 mm) prices for Ex Shanghai settled at USD 713/MT.
Russian Steel Rebar prices fell in the second quarter of 2022 due to low demand and limited transactions in the domestic market. According to market participants, weak domestic demand amid rising concerns about the country's economic development and mills' limited export due to trade sanctions exacerbated the impact on Steel Rebar demand. Furthermore, few of Russia's overseas buyers are willing to trade due to the risk of sanctions or banks refusing to finance transactions, sluggish terminal demand, and rising inflationary pressures. Steel Rebar prices fell dramatically in the United Kingdom, owing primarily to slower production growth, weaker domestic demand, limited export orders, rising cost pressures, and the Ukraine war. Furthermore, lower raw materials prices, especially nickel costs, and reduced consumption from mills have further provoked Steel Rebar (8 mm) prices for Ex Sheffield (UK (United Kingdom)) to settle at USD 1223/MT.
For the Quarter Ending March 2022
In North America, supply chain disruption caused inflation in raw materials prices of steel. Moreover, Major steel enterprises are consistently trying to reduce raw materials prices and focusing on minimizing the active backlogs of incomplete work. However, local market players have already achieved their needs for May and waiting for the bidding to begin in May. As transportation and delays threatened to interrupt operations, severe supply limitations presented substantial concerns. Additionally, higher freight charges forced higher import costs for steel in North America. Due to the soaring steel prices in North America, Steel Rebar prices also inflated. At the end of the first quarter of 2022, Steel Rebar prices for Ex-US Midwest settled at USD 1120 per tonne.
Due to steel price inflation, the Asian Steel Rebar market price flourished in the first quarter of 2022. Supply disruptions fuel the rise in steel raw material prices due to the ongoing conflict between Russia and Ukraine. However, in China, Steel prices soared to nearly USD 817 per tonne and Steel Rebar prices to USD 796 per tonne, the highest amount since October last year, as fears of supply shortages arose following a lockdown in Tangshan. Transportation issues created by coronavirus-related restrictions in China's most prominent factories generated raw material shortages in most companies. Furthermore, increased energy costs resulting from the conflict have forced domestic companies to boost prices for massive Steel sections. However, due to rising coking coal costs, Indian steelmakers have increased Steel Rebar prices by USD 18-30 per tonne in mid-quarter. However, Steel Rebar prices in most markets plunged INR 2,200/t at the end of Q1. The price of Steel Rebar for Ex Mumbai settled at USD 815 per tonne.
During the first quarter of 2022, Steel Rebar prices in Europe jumped to USD 900 per tonne. This soaring was primarily due to geopolitical tensions between Eastern European nations. The extended hostilities between Russia and Ukraine resulted in higher prices and limited steel supply, fuelled by spikes in energy prices and supply shortages. Additionally, European Steel market players continued to hold back bookings on Europe-origin HRC due to competitive import offers and full credit of lines. During the end of the first quarter of 2022, Southern European Steel Rebar prices hiked by USD 30-150 per tonne, settling the Steel Rebar price for Ex-Moscow (Russia) at USD 900 per tonne.