Divergent Trends in Global Steel Wire Rod Prices: US Falls, Germany and China on Rise

By the week ending May 17th, Steel Wire Rod prices fell in the US market. Automobile sales volume also dropped month-on-month, reducing demand from downstream sectors, and leading to a decline in Texas Steel Wire Rod prices. Conversely, in Germany, Steel Wire Rod prices rose. Freight charges from China and East Asia to Northern Europe increased which impacted the transportation cost. In China, Steel Wire Rod prices rose as export prices increased amid a market rebound. The National Bureau of Statistics reported a rise in the sales price index for both the construction and service sectors. Real estate sector growth in certain cities boosted market sentiment and short-term demand.

By the week ending May 17th, Steel Wire Rod prices in the US market declined. According to data from FRED, the Producer Price Index for the Iron and Steel Pipe and Tube Manufacturing industry, which includes iron and steel pipes and tubes made from purchased steel, dropped by 4.9% month-on-month in April. The similar market situation is observed in May 2024, affecting the pricing dynamics of the product. Additionally, automobile sales volume fell by 8.7% month-on-month in April. The decreased demand from downstream sectors influenced the final prices of Steel Wire Rods in the US domestic market. As a result, Steel Wire Rod prices in Texas (USA) fell by 1.0% on May 17th.

Steel Wire Rod prices in the German domestic market saw an increase. During this period, freight charges from China and East Asia to Northern Europe rose by 10.9%. In April, automobile sales volume surged by 19.8% compared to the previous year, influencing the prices of Steel Wire Rod. Quarterly indices for conventional new building prices and maintenance work on residential buildings showed a 1.4% rise in the first quarter of 2024 compared to the base year, indicating growing demand for Steel Wire Rod in Germany's domestic market.

Chinese Steel Wire Rod prices increased as export prices rose amid a market rebound in China. Inventories remained low while demand grew. The National Bureau of Statistics (NBS) reported that the sales price index for the construction sector increased to 48.7 percent, up 0.3 percentage points from the previous month. Growth in the real estate sector in certain cities boosted market sentiment, impacting Steel Wire Rod demand in the short term. As a result, Steel Wire Rod prices rose by 0.4%, reaching USD 566 per metric ton Ex Shanghai (China). These changes underscore the complex interplay of global economic factors affecting the steel and related industries, highlighting ongoing shifts in supply chains and market dynamics.

According to ChemAnalyst, changes in pricing trends in the United States may result from increased demand in sectors like automotive, driven by seasonal variations. In Germany, Steel Wire Rod costs are expected to rise due to higher raw material prices. Meanwhile, China could see a boost in demand from the construction sector, which may lead to increased purchases and prices.