Fluctuation in Steel Wire Rod Prices: US Falls, Germany and China on Rise

The US Steel Wire Rod market experienced a drop due to increased inventories of imported steel. This was accompanied by month-on-month decline in manufacturers' new orders in April, indicating weak domestic demand. Additionally, freight charges from Northern Europe to the North American East Coast decreased. In Germany, domestic Steel Wire Rod prices rose influenced by increase in freight charges from East Asia to Northern Europe. The construction sector experienced growth driven by residential projects due to a housing shortage. Automobile sales surged year-on-year in April, impacting Steel Wire Rod prices positively. Chinese Steel Wire Rod prices rose due to strong local market demand despite limited transactions and low inventory levels.

As of the week ending May 24th, the US Steel Wire Rod market experienced decrease of 1.0%, driven by an influx of imported steel that lowered prices, causing mills to face higher production costs than selling prices. FRED data shows that Manufacturers' New Orders for Iron and Steel Mills, Ferroalloy, and Steel Product Manufacturing declined by 1.7% month-on-month in April, alongside an 8.7% drop in automobile sales volume shows low demand within the domestic market of US. Additionally, a 0.6% decrease in freight charges from Northern Europe to the North American East Coast affected transportation costs weekly on May 24th. The U.S. Department of Commerce imposed preliminary duties on imports of carbon and Steel Wire Rod from China due to unfair government subsidies.

Domestic Steel Wire Rod prices in Germany rose by 0.7% weekly due to multiple factors. A 6.1% increase in freight charges from China and East Asia to Northern Europe impacted transportation costs. The ongoing revival of construction activity in Germany goes beyond a simple rebound in orders, driven by a rise in residential building projects amidst a significant housing shortage, a hot topic in German politics. Market dynamics have led to notable changes in Steel Wire Rod volumes and prices. Additionally, automobile sales in April saw a 19.8% year-on-year surge, affecting Steel Wire Rod prices.

During the week ending April 24th, the prices of Chinese Steel Wire Rods rose by 0.5% compared to the previous week, fuelled by robust demand in the local market, which drove sellers to present offers actively, even with limited transaction volumes. Inventories of Steel Wire Rods stayed at low levels, adding to the complexities. As a result, export prices for Steel Wire Rods escalated due to significant demand in Southeast Asia, which had repercussions on the Chinese domestic market. Additionally, April saw a 12% month-on-month decrease in automobile sales.

ChemAnalyst predictions indicates that pricing trends in the United States might shift due to seasonal demand increase in sectors such as automotive. In Germany, the cost of Steel Wire Rod is anticipated to climb because of higher production cost including the freight charges and raw material expenses. Concurrently, China could experience a rise in construction sector demand, driving up both purchases and prices. These varying regional market dynamics underscore the complex factors influencing global Steel Wire Rod pricing trends.