Cold Rolled Coil Prices Decline in US and Germany; China Remains Stable

With the week ending on September 27^th the Cold Rolled Coil prices decreased in US and Germany due to an ongoing global disruption in supply chain. Meanwhile in China, Cold Rolled Coil prices have remained stable, with no significant shifts in supply and demand influencing pricing.

Cold rolled coil prices in US witnessed a decrease by the week ending September 27^th, driven by an imbalance between supply and demand. Adding to the supply concerns, a potential strike at East Coast and Gulf ports in early October, due to unresolved issues between the International Longshoremen's Association and US maritime employers, threatens to disrupt supply chains. Negotiations are centred around wage increases and port automation, but no agreement has been reached as the current contract approaches its expiration. Moreover, Cleveland-Cliffs Inc., the American steelmaker, has reaffirmed its interest in acquiring certain assets of U.S. Steel that could face closure if the US President blocks the proposed takeover by Japan's Nippon Steel. On the demand side, Cold Rolled Coil consumption in the US remains weak, mirroring broader steel market trends. Other steel products have also seen sluggish demand, with distributors reporting lower-than-average activity levels, although September showed some improvement compared to the quieter summer months.

The German Cold Rolled Coil (CRC) market saw a price decline on September 27^th. On the supply side, German steelmakers have reacted to market conditions by reducing steel production. These production cuts aim to address oversupply in response to waning demand in the European market, though they have not fully alleviated the downward pressure on prices. Additionally, global disruptions, including ongoing conflicts in Ukraine and the Middle East, have further complicated steel supply dynamics. Demand for Cold Rolled Coil in Germany and northern Europe remains weak, particularly in the construction sector, which has been hindered by the European Central Bank's reluctance to lower interest rates.

Given the current market dynamics, Cold Rolled Coil prices in China have remained steady on September 27^th, following the trend from previous week. This stability is largely due to the absence of any major shifts in supply and demand that would influence pricing.

According to ChemAnalyst, Cold Rolled Coil prices in the US and German markets are likely to rise amid ongoing tensions in the Middle East and Europe. In contrast, China may witness a decrease in Cold Rolled Coil prices due to a combination of low market confidence and ample product supply.