Divergent Trends: US & European Steel Plate Markets Navigate through Fluctuating Prices in June

Amid fluctuating global Steel Plate prices, the US and European markets witnessed varied trends and policy developments in June. In the US, Steel Plate prices remained stable in the spot market during the third and fourth weeks of June. Although US business activity surged to a 26-month high, price pressures eased, signalling potential sustained moderation in inflation.

In the United States, Steel Plate prices portrayed stability during the latter part of June, under the influence of prevalent market sentiments. The American Iron and Steel Institute (AISI) reported that domestic raw steel production underwent fluctuations, yielding 1,704,000 net tons in the week ending June 15. While showing a slight decrease from the preceding week, the uptick in U.S. business activity, driven by employment revival, offered optimism amidst eased price pressures.

Nippon Steel Corporation's acquisition of United States Steel brought forth a clear commitment to adhere to US trade laws, affirming support for the US-based company and denoting the refraining from interference in trade determinations. The subsequent increase in domestic raw steel output, reaching a four-week high, indicated a promising trend for the US steel industry.

However, in Europe, the steel industry faced weak demand, contributing to a slight decline in Steel Plate prices during the third week of June. Projections pointed to a further slowdown in steel demand as northern European regions embarked on the summer holiday season. German steel production experienced a 1.9% year-on-year decrease in May, as the economy contended with challenges in generating growth.

The German spot market experienced a marginal decline in Steel Plate prices during the fourth week of June amidst subdued market demand. The European Union extended steel safeguard measures to address high import levels and stabilize the market, recognizing the pressure on the EU's steel industry from increasing imports and persistent overcapacity.

In the US, carbon Steel Plate pricing encountered a decline following Nucor's reduction in monthly published base prices, prompting concerns about its wider implications. Furthermore, the US and Mexico revealed new measures to combat the circumvention of US tariffs on steel and aluminium, specifically targeting shipments routed through Mexico from countries like China.

Overall, the Steel Plate markets in the US and Europe are navigating shifts in supply, demand, and policy interventions. While the US market experienced stability with a surge in business activity, Europe grappled with declining demand and the extension of safeguard measures. The divergence in market dynamics underscores the intricate challenges and opportunities facing the global Steel Plate industry as it adapts to evolving economic and trade landscapes. Ultimately, the developments observed in the US and European Steel Plate markets underscore the intricate challenges and opportunities facing the global steel industry.