For the Quarter Ending June 2023
North America
The price of Steel Wire Rods showed a mixed trend in the second quarter in the US spot market as the declining economy and construction activity reduction pushed the prices downward. In H2 of the second quarter, the US financial market had to face a debt crisis after the downfall of several banks created a declining economic trend. The lack of labor and the declining housing sector led to a reduction in construction activity. The declining economy provoked the buyers to shy away from placing large orders as the US market sentiments were uncertain. The consumption rate returned to a dwindling phase as the infrastructural developments were slowed down as the interest rate increased. The inventory level was on a higher edge as the usage declined, and overseas suppliers from China flooded the global market with their surplus supply at a relatively cheaper rate. This provoked the local mills to decrease their offer price to sustain the competitive global market. At the end of Q2, Steel Wire Rod's price gained hope after extending the debt crisis deal for two years.
Asia-Pacific
In the Chinese spot market, the price of Steel Wire Rods showed an inclining price trend as the feedstock iron ore and coke prices subdued in Q2. The price of Steel Wire Rods declined amid weak construction activity as the monsoon arrival affected construction in the East China region. The construction activity plunged as the weather and increasing feedstock concrete and cement price put downward pressure on the downstream construction industry. Amid weak market sentiment, several plants shifted to maintenance shutdown and production cuts to lower the supply-demand gap. The demand from overseas countries declined as the Indian, US, and European markets put anti-dumping duties on imported steel from Chinese manufacturers. The inventory level remained on a higher edge as the demand and consumption decreased. This provoked the local suppliers to offer surplus quantity at a lower offer price. Meanwhile, the declining economic condition in China and in the overseas market across USA and Europe led to declining usage of Steel Wire Rods and increased the supply level in the Chinese spot market.
Europe
The Steel Wire Rod price showed a mixed trend in the German spot market amid weakening economic conditions along with the declining construction rate. The downstream construction industry inched downward as the labor crisis and Economic degradation put downward pressure on the price of Steel Wire Rods. The construction workers union has gone into strikes and protests in front of Belgium headquarters to improve worker safety measures along with proper financial support. The lack of human resources halted construction activity across the German spot market. The rising inflation rate caused a plunging demand for households and led to housing crises across major European countries. The uncertain economic factors provoked the buyers to shy away from placing large orders as market sentiments got bearish. The inventory level remained on a higher edge as overseas suppliers from China have flooded the global market with their surplus supply at a relatively cheaper rate. This provoked the local mills to decrease their offer price to sustain the competitive global market.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Steel Wire Rod prices in the US market experienced an upward trend as major players raised feedstock prices amidst soaring scrap costs. After a sluggish start, demand picked up moderately, reflecting lower inventory levels following the holiday season. Downstream demand for domestic Steel Wire Rods remained strong, but producers did not raise prices significantly due to wide raw material margins. In February, rebar prices showed decoupling from raw materials, with producers having little incentive to raise selling prices despite rising production costs. Economic uncertainty and rising interest rates added to the already low construction demand. The raw material scrap market remained firm in March, with US market participants confident that Steel Wire Rod prices would remain stable. Domestic demand remained stable as seasonal construction picked up and funding from the Infrastructure Investment and Jobs Act reached end users. As a ripple effect, the Wire Rod (A36-8 mm) for Ex Texas and CFR Texas was assessed at USD 1524/MT and USD 1427/MT, respectively.
Asia Pacific
In Q1 2023, the Chinese Steel Wire Rod market witnessed an upswing in prices due to stable raw material prices and increased inquiries from the downstream construction segment. Following the holiday, market quotations were generally higher, but the market was relatively quiet due to most terminal enterprises and futures companies still being on vacation. Steel mills raised ex-factory prices during the holiday, increasing traders' costs, as Steel Wire Rod production costs remained high. The majority of BF steel mills maintained stable production, and the resumption of electric arc furnaces contributed significantly to the significant increase in February. Market sentiment improved on the demand side as rebar prices stabilized and rebounded, and on the supply side, the operating rates of domestic Electric Arc Furnace (EAF) steel mills continued to rise. Steel Wire Rod prices from Eastern China mills remained unchanged in early March, indicating their cautious assessment of the market's recovery. The overall sentiment in the domestic steel market improved somewhat throughout Q1, resulting in the Wire Rod market settling at USD 655/MT and USD 689/MT for Ex Shanghai and FOB Shanghai, respectively.
Europe
In Q1 2023, the Steel Wire Rod prices in the German market remained stagnant due to limited downstream construction queries, while domestic manufacturers continued to raise prices. The Steel Rebar market was stable, but the combination of lower energy costs and weak demand could have led to further downward pressure on prices. Although distributors had ordered from the construction sector, any increase in prices resulted in a halt in sales, as customers refused to buy above a certain price level. In January, local producers had only partially resumed output due to a lack of orders, and downstream players reported significantly lower private residential sales. Steel Wire Rod demand remained low, but mills refused to lower their prices further, citing high costs. Despite expectations of higher price movements due to rising energy and scrap costs, limited import availability for Steel Wire Rods, and producers seeking higher prices, the market remained in a deadlock. As a result, the discussion of Steel Wire Rod settled at USD 746/MT and USD 722/MT for Ex Ruhr and CFR Bremen, respectively.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the market prices for US Steel Wire Rod followed the declining trend due to slow demand and abundance of supply in the regional market. Some service centers had lowered contract quantities due to the prolonged excess steel and reduced pricing and demand volatility. Due to less competitive global prices earlier in Q4, rebar pricing in the domestic US market continued to decline. The supply chain eased in the mid-quarter, and industrial output was moderate. According to market participants, the domestic steel wire rod market in the US was quiet due to a brief dip in buying activity related to the winter holidays.
Asia-Pacific
In the Asian market, the price sentiment of Steel Wire Rods inclined as compared with the previous quarter owing to the Chinese market's limited demand and industrial restrictions. In the mid-quarter, the inventories were limited due to staff shortages and logistics issues. Consequently, a supply shortage was observed by the end-use manufacturing units leading to a price incline in the regional market. Towards the quarter's end, the demand scale rose, and the inventories resumed working at a regular pace. Chinese Wire Rod market increased significantly because of the greater support for the real estate sector. China's construction steel export prices had increased as a result of optimistic predictions for the Chinese steel market.
Europe
With a slow downstream demand expectation and rising inventory levels, the price trend for Steel wire rods in the European market declined toward the end of Q4. The material had sufficient available stockpiles to cater to domestic demand. According to buyers, Supply chain disruption impacted the transit time from many mills, and a slow operational rate in the regional market was witnessed. Purchases were delayed by customers, and fewer orders were placed. The terminal demand, according to buyers, had been largely consistent, and distributors conquered fewer inquiries. The market was constrained by excess stocks and low actual demand, according to buyers, to the point where most European stainless mills reduced production. According to sellers, domestic pricing for SS Hot-rolled coil in Europe stayed steady due to a pause in the market before the Christmas holidays.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the US Steel Rebar prices fell due to the limited buying sentiments. Market participants believe supply chain disruptions caused by price increases in July weighed on buyer spending. Buyers claim that June's most recent drops in ferrous pricing fuelled speculation that the market reached the bottom. Unfortunately for ferrous scrap sellers, later bids from overseas buyers and sluggish domestic buying in the early quarter governed the price dynamics of Steel wire rods. Furthermore, US Steel Wire Rod prices had significantly impacted weak downstream demand, cautious service center purchasing, and persistently high inventory supply. Towards the quarter's end, the price of Steel wire rod was USD 1548 per MT, Ex-Texas (USA).
Asia Pacific
Steel Wire Rod prices in the Chinese market fell during the third quarter of 2022 due to a sluggish demand outlook. According to market participants, China's steel demand significantly underperformed due to ongoing contractions in the country's real estate sector, while the firm stated that an energy crisis had increased the risk of a European recession. Furthermore, the US Federal Reserve continued to raise its policy rate, strengthening the US dollar while increasing import costs for emerging markets. Domestic rebar prices in China increased towards the quarter, starting after the government announced additional infrastructure development and easing pandemic-related restrictions. The construction sector in North China, East China, and Southwest China was reduced primarily due to stable and falling business market prices and cold terminal demand. Towards the quarter end, the price of Steel wire rod was USD 626 per MT, Ex-Shanghai (China).
Europe
Steel wire rod prices in the European market fell precipitously in the third quarter of 2022 due to low demand and higher energy costs. According to market participants, summer vacations and routine plant maintenance also contribute to low steelmakers' demand. Steel Wire Rod prices rose in the quarter as mills reduced capacity due to high production costs. Furthermore, high energy prices forced some mills to extend their August maintenance shutdowns into September. Buyers refused to pay inflated prices. As a result, the Steel Wire Rod market remains quiet this quarter, with demand subdued and buyers on the sidelines. Towards the quarter end, the price of Steel wire rod was USD 856 per MT, Ex-Ruhr (Germany).
For the Quarter Ending June 2022
North America
The Steel Wire Rod prices in the US witnessed an upswing during the second quarter of 2022 owing to the raw material shortage amidst rising geopolitical uncertainty. However, the disrupted supply chain and growing inflationary pressures further provoked Steel Wire Rod prices to soar. The Russia-Ukraine combat and its ramifications, particularly on raw materials and logistics, and the hikes in both energy prices and steelmakers' manufacturing costs, further impact supply-demand-side and production costs. However, the expansion rate in production outcomes was the slowest, as material shortages, delivery delays, and a weaker rise in new orders further hampered industry growth. Additionally, with the rising inflation rate, firms pass on higher expenses to customers through a near-record rise in output charges. Hikes in energy, fuel, and transportation costs increased input costs. As a ripple effect, the price of Steel Wire Rod settled at USD 1678/MT.
Asia Pacific
During the second quarter of 2022, the Steel Wire Rod prices witnessed fluctuating market dynamics in the Indian and Chinese markets. As per market players, weak demand, piled-up inventories, and a drop in iron-ore prices amid another round of COVID-19 outrages in China have caused supply chain disruptions, and the ongoing impact on exports is considered a factor weighing on market confidence. However, in April, the Steel Wire Rod prices surged amidst higher inflationary pressures, reflected in both rising purchase costs and output charges. Steel Wire Rod supply in the Indian market has increased since the Indian government imposed a 15% export duty. However, export viability has declined, and there have been no significant export bookings reported this quarter. Firms avoid offering standard materials because they will incur a 15% export duty. There is a chance that Steel Wire Rod prices will fall further in the short term as raw material prices fall. As a ripple effect, the Steel Wire Rod ( 5.5 mm) prices for Ex Mumbai (India) settled at USD 56820/MT.
Europe
In European nations, the Steel Wire Rod prices witnessed a declining trend during the Q2 of 2022, and trading activity in the region remained slow due to buyers' having full credit lines. In April, the Steel Wire Rod prices remained stable despite slower trading, with cheaper imports limiting buyer interest for domestic materials. However, buyers are holding back in expectation of further substantial price drops. In May and June, Steel Wire Rod prices plunged amidst sluggish buying and the availability of cheap imports. As per market players, Wire rod prices have fallen in Europe amid slow trading activity, import pressure, and more low-grade scrap raw materials. Russian wire rod export prices continued to slide because of the limited number of buyers willing to touch the product of Russian origin, given the risks associated with existing and potential further sanctions against Russia for its war in Ukraine. Wire rod prices are falling across Southern Europe, and mills may close early. Weak demand, customer destocking, and competitive import prices continued to drag prices for European wire rods.
For the Quarter Ending March 2022
North America
During Q1 of 2022, the US market witnessed an upswing due to rising inflation over raw material prices amidst the extending combat between Russia and Ukraine. In January, the US manufacturers increased Steel Wire Rod's prices by more than USD 22/MT, while buyers continued to resist. The US domestic Steel Wire Rod market continues citing transactions at record-high prices. Since the hostility between Russia-Ukraine began, the US Steel Wire Rod prices showcased inclining following supply uncertainties. As per market participants, increasing risk of procurement, constraints of financial support, transportation bottleneck, and growing uncertainty about the product availability have further raised the concern. As a ripple effect, the Steel Wire Rod (A36-8 mm) prices for Ex-Texas (USA) settled at USD 1370/MT during March-ending.
Asia
During the first quarter of 2022, the Steel Wire Rod prices in the Asian market are severely impacted by a host of elements, including significant COVID-19 disruptions, stretched international supply chains, rising global inflationary pressures, and elevated geopolitical tensions amid Eastern European nations. As per market participants, the imbalance between raw materials supply and demand outlook was a significant factor contributing to a further rise in manufacturers' purchasing costs. Additionally, the demand for Steel Wire Rod remained robust throughout the quarter while the Russian-Ukraine conflict provoked buyers to adopt a wait-and-watch policy for further price hikes. As a ripple effect, the Steel Wire Rod prices for Ex Mumbai (India) settled at INR 63000/MT.
Europe
In Europe, the Steel Wire Rod prices witnessed an inclining trend owing to the stretched supply chains and soaring raw materials costs amidst the Russia-Ukraine war. As per market participants, the Russia-Ukraine conflict has provoked market panic about supply shortage, resulting in prices moving north radically, be it iron ore or coking coal. The Russia-Ukraine conflict and its repercussions, especially on raw materials and logistics, impacted supply and demand dynamics, with high prices leading to small-value transactions to meet emergency requirements. Furthermore, the sanctions imposed on Russia, coupled with the rouble's declining exchange rate of the rouble and Russia's removal from the Swift international payment system, and other restrictions imposed, have led to a surge in Steel Wire Rod prices.
