Global AL6XN Prices Face Downward Pressure Amid Oversupply Supply and Weak Demand

Global AL6XN prices have declined as fluctuating supply and softened demand shape market dynamics across regions. Moreover, in the US, Germany and China, AL6XN prices declined due to an oversupply situation alongside demand challenges is leading to a drop in AL6XN prices, painting a complex picture for the months ahead.

The prices of AL6XN declined, influenced by market fluctuation. Meanwhile, the USA AL6XN market is experiencing an uptick in supply alongside softened demand, which has led to a price decrease. Moreover, supply levels rose due to steady seaborne iron ore prices and ample imports, contributing to a competitive environment. Additionally, Nucor’s recent downward adjustment in spot prices for steel further reflects market realities and addresses price resistance, helping sustain supply. However, demand has taken a hit due to declining steel exports. Furthermore, September saw a notable dip in U.S. steel exports, particularly to Canada and Mexico, impacting the AL6XN market. Additionally, shipments from U.S. steel mills and production at U.S. Steel Kosice in Slovakia fell, highlighting weakened market momentum.

The prices of AL6XN declined, influenced by rising supply but weakening demand. Additionally, recent trend shows a robust increase in production, as German steelmakers achieved a monthly boost of supply level, partly driven by a significant recovery in Electric Arc Furnace (EAF) production. Moreover, a downturn in the construction sector, evidenced by declining activity and orders, has impacted AL6XN usage. Political uncertainties, notably the recent government coalition breakdown and the dismissal of Finance Minister Christian Lindner, add to economic concerns. Coupled with an annual drop in steel demand, this points to weakened momentum in key steel-consuming sectors, affecting the overall demand landscape and leading to price decrease in the AL6XN market.

The prices of AL6XN declined, influenced by fluctuating supply and subdued demand. Additionally, Demand for AL6XN has softened due to seasonal slowdowns, with mills preparing for lower consumption in the coming months. Additionally, the economic strain on China's property sector, evidenced by New World Development's significant projected losses, has heightened caution among market participants. Moreover, China’s AL6XN market is navigating a complex phase marked by a slight increase in supply and weakened demand. Furthermore, the China Iron and Steel Association (CISA) reported an uptick in crude steel output among major steel enterprises by mid-October, contributing to increased inventories of AL6XN.

According to ChemAnalyst, prices of AL6XN in the US, Germany, and China are expected to increase, likely driven by reduced supply levels and robust purchasing activity.