Mixed Trends in Global Cold Rolled Sheet Market: US Prices Climb, Stability in Germany, and Decline in China
- 02-Dec-2024 3:45 PM
- Journalist: Emilia Jackson
The global Cold Rolled Sheet market showcased mixed trends with the week ending on 29th November. In the USA, prices climbed amid steady demand from industrial sectors and tighter supply due to reduced steel imports. In contrast, the German market exhibited remarkable stability for Cold Rolled Sheet, with consistent production from local steelmakers and steady industrial demand maintaining balanced market dynamics. Meanwhile, China saw a price decline of Cold Rolled Sheet as robust production outpaced demand, leading to inventory build-ups.
The USA Cold Rolled Sheet market saw price fluctuations, resulting in an overall increase. Demand for Cold Rolled Sheet remained steady, supported by consistent activity in key industrial sectors. On the supply side, the market faced significant constraints, primarily due to a reduction in rolled steel imports. Steel imports, including semi-finished products, saw a decline, highlighting ongoing supply challenges. These issues were further compounded by regulatory changes, such as the U.S. Department of Commerce's decision to raise import duties on Nippon Steel's hot-rolled products from 1.39% to a substantial 29%. This move, part of an administrative review, is aimed at reducing Japanese imports and bolstering domestic production. In addition, Nippon Steel revealed plans to cease importing slabs from its international mills to the U.S. following its acquisition of US Steel. Together, these factors tightened supply and influenced pricing in the market.
Cold Rolled Sheet prices in Germany have stayed consistent week on week. Supply conditions in the German market continued to be stable, with local steelmakers maintaining consistent output levels to meet domestic demand without disruption. This reliable supply helped sustain stable pricing, boosting confidence among industry stakeholders. Additionally, demand for Cold Rolled Sheet in Germany remained steady, supported by ongoing industrial activity. While growth in downstream sectors was moderate, it was enough to maintain market balance for Cold Rolled Sheet. This steady demand effectively absorbed production, preventing an oversupply and further reinforcing price stability for Cold Rolled Sheet.
The China Cold Rolled Sheet market saw a decline in prices compared to the previous week. Demand has softened, largely due to a downturn in China's real estate sector. Real estate investments dropped year-on-year, accompanied by a decrease in the total area of new commercial real estate sold and a reduction in the area under construction. This decline in a key consumer segment of steel products has significantly impacted market dynamics, causing demand to fall behind high production levels. On the supply side, production remained robust, continuing to support China's manufacturing sector, but has also led to rising inventory levels in the domestic market. With supply exceeding demand, producers are facing pricing pressures as they strive to balance production with market absorption.
According to ChemAnalyst, Cold Rolled Sheet sales in the US and Germany are expected to incline, likely due to increased purchasing activity. In China, prices are forecasted to decrease, driven by weak market confidence and an oversupply of products.