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.
