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.