Global Cold Rolled Coil Markets See Price Declines Amid Economic Challenges and Regulatory Pressure

With the week ending on July 5^th, the global Cold Rolled Coil markets saw a series of nuanced shifts across the USA, Germany, and China, each influenced by distinct local dynamics yet echoing a broader trend of economic pressure and fluctuating demand.

With the week ending on July 5^th, the USA Cold Rolled Coil market experienced a price decrease. Supply levels remain steady, influenced by both economic and industry-specific factors. Despite ongoing acquisition discussions, meetings between Nippon Steel and the United Steelworkers union have yielded little progress for Cold Rolled Coil market. Economic indicators present a mixed picture, with manufacturers' new orders for iron and steel products decreasing in May. The Producer Price Index (PPI) for various steel commodities, including steel pipe, tube, and stainless steel, has also declined. The automotive sector, a significant driver of Cold Rolled Coil demand, saw a drop in new vehicle sales in June, although total sales for the first half of 2024 showed some recovery. US steel mills, such as Cleveland-Cliffs, Steel Dynamics, and Nucor, have lowered their growth expectations for 2024. While Q1 shipments rebounded from Q4 lows, they still showed a year-on-year decline.

As the week ended on July 5^th, the Germany Cold Rolled Coil market saw a slight price decrease, reflecting reduced demand dynamics. Compared to 2023, steel imports dropped, while flat products increased. Long products accounted for 78% of total imports, and steel exports rose year-on-year. Despite a slight easing in the rate of decline in construction activity, residential construction remained the weakest sector, while commercial and civil engineering activities showed stable contraction rates which impacted the Cold Rolled Coil market. Additionally, producer prices for industrial products in Germany were 2.2% lower in May 2024 compared to May 2023, indicating low manufacturing activity. It is expected that producer prices for industrial products in June may also decline, according to the Federal Statistical Office (Destatis).

As the week ended on July 5^th, Cold Rolled Coil prices in China experienced a slight decline. The sector continues to face pressures from supply, weak domestic demand, and regulatory changes impacting the mining sector, exacerbating pricing issues. Expectations of production cuts at major manufacturers, coupled with high costs and narrow profit margins, contributed to this decline. The export market remains lacklustre due to China's strategy of flooding global Cold Rolled Coil market with competitively priced steel, leading to trade tensions. Regulatory changes, such as enhanced safety measures in mining facilities, have increased operational complexities and costs. Demand for Cold Rolled Coils remains moderate, with the real estate sector showing a decline in property prices and sluggish new housing sales. Strategic adjustments are needed to align production levels with market realities. Additionally, according to the National Bureau of Statistics (NBS), China's Purchasing Managers' Index (PMI) for June remained at 49.5 percent, the same as the previous month, indicating that the overall condition of the manufacturing industry was relatively stable.

According to a ChemAnalyst, Cold Rolled Coil prices in the USA are poised to rise due to increasing demand across various sectors. A potential resurgence in the construction industry is expected to drive up purchases and prices. Similarly, Germany is contemplating strategies to bolster its domestic Cold Rolled Coil sector, potentially influencing global price trends. Moreover, the expanding automotive industry in China is anticipated to bolster global demand for Cold Rolled Coil. This heightened consumption from China, a pivotal market, could profoundly affect global prices and market dynamics, particularly in regions like the USA.