Global Steel Rebar Prices Witness Decline Amidst Varied Market Influences

Towards the end of March 29th, Steel Rebar prices in the US saw a minor decline, influenced by decrease in US coal prices during February, impacting Steel Rebar. Factors such as increased domestic supply due to capacity expansion, recent price drops in merchant bar and special bar quality steel, falling scrap prices, slow construction demand and decreased inventory levels at domestic service centres are contributing to weak rebar prices. Similarly, in the German market, Steel Rebar prices fell due to lower coal prices, Easter-induced reduced raw material costs in Europe, and subdued demand, leading to cautious trading. Meanwhile, in China, sluggish markets, reduced raw material costs, and cautious purchasing due to anticipated price drops and uncertain demand led to a decline in Steel Rebar prices.

Towards the end of March 29th, Steel Rebar prices in the US experienced a slight dip. As per the data, the dip in US coal prices by 3.8% in February, had an impact on Steel Rebar prices. Increased domestic supply because of capacity expansion and recent price drops in merchant bar and special bar quality steel are keeping rebar prices weak. Scrap prices are also falling, and construction demand is slow, which is leading to a reduction in inventory levels at domestic service centres. Additionally, non-residential construction is outweighing residential housing demand, which is causing a 0.32% weekly decrease in Steel Rebar prices.

Steel Rebar prices in the German market saw a decline of around 0.61%, the drop was driven by subdued demand and lower raw material costs in Europe due to Easter, contributing to the ongoing pressure on Steel Rebar prices. Market rates are nearing a challenging threshold for producers, prompting cautiousness among buyers and a wait-and-see approach in trading. Overall, trading activity remained slow with limited bookings, particularly in the construction sector, indicating no improvement in demand and resulting in a weekly decrease in Steel Rebar prices.

The end of March 2024 marked a decline in Steel Rebar prices in China, attributed to sluggish markets that caused substantial losses in the nation's steel industry. This downturn in global Steel Rebar prices was influenced by reduced raw material costs. In China specifically, coal prices experienced a slight drop, particularly a modest 0.8% decrease in February compared to the previous month. Consumers of Steel Rebar have curtailed their purchases, anticipating further price decreases amidst uncertain demand, prompting cautious assessments of market prospects by buyers. The completion of investment in real estate development from January to February witnessed a 9.0% year-on-year decrease in total investment, with residential building investment down by 9.7%, as reported by the National Bureau of Statistics (NBS). These factors combined contributed to a 0.41% reduction in Steel Rebar prices.

According to ChemAnalyst, Healthy purchasing activities and strong market sentiments may hike the market dynamics. The downstream sectors, which has shown limited recovery, is expected to drive an increase in the demand for Steel Rebar. As the German government is initiating new deals to revitalize the Steel Rebar industry, it may cause fluctuation in the prices.