Stainless Steel CR Coil Prices Edge Up Amid Supply Chain and Energy Pressures
- 04-Mar-2025 7:45 PM
- Journalist: Yage Kwon
With the week ending on February 28th, the global stainless steel CR coil market remains in a state of flux, with supply chain disruptions, energy costs, and industrial demand shaping price movements. While the USA, Germany and China Stainless Steel CR coil continue to see price increase amid supply challenges and strong downstream demand.
The prices of Stainless Steel CR Coil in USA increases by 0.3% due to supply and demand fluctuation. The supply of stainless steel CR coil faces notable challenges, as highlighted by the recent production statistics released by the American Iron and Steel Institute (AISI). For the last week of February, US domestic raw steel production stood at 1.641 million net tons, reflecting a decrease of 1.1% from the previous week's output of 1.659 million net tons. Furthermore, capacity utilization fell to 73.7%, down from 74.5% the previous week and significantly below the 77.5% rate observed during the same week last year. The year-over-year decline in production—4.6% less than the same period in 2024—indicates a tightening supply situation that has implications for stainless steel prices. On the demand side, robust activities in the automotive sector continue to drive interest in stainless steel CR coil. New vehicle sales in the USA, which reached an impressive growth signal the resilience of the automotive industry despite economic uncertainties showcases the increasing consumer demand for vehicles.
Germany saw a 0.2% slight price increase in Stainless Steel CR Coil due to market fluctuation. Moreover, steady production difficulties combined with rapidly increasing energy expenses create supply constraints that resulted in a minor price increase. The German stainless steel CR coil market supply side experiences substantial constraints because production faces difficulties due to expensive energy prices. Additionally, Georgsmarienhuette Gruppe (GMH) has been compelled to stop operations at its Osnabrück Electric Arc Furnace (EAF) facility. The decision demonstrates the impact of the continuous energy crisis which has caused energy prices to rise dramatically. Furthermore, the need for stainless steel CR coil continues to grow. The industry modernization efforts combined with production capability improvements drive the rise. Moreover, the transition to electric vehicles requires high-quality steel products because automakers need materials that adhere to modern vehicle design standards, which depend heavily on stainless steel components.
Stainless steel CR coil in China slightly increase by 0.2% from the previous week. The stainless steel CR coil supply chain is influenced by many factors, including the recent changes in raw material costs and tariffs. Additionally, several steel products have witnessed minor price increases, as reported by China’s Ministry of Commerce (MOC). Moreover, the prices of nickel and pig iron surged, suggesting a raw material shift that impacted the production prices of stainless steel. Meanwhile, the ferronickel market, which is an essential ingredient for stainless steel, is stabilizing on the back of lower production, which further impacted the ferronickel pricing and restraining stainless steel production in China. On the one hand, there is the prospect of elevated prices because of new tariffs combined with increasing general steel prices, but balanced demand prevailed.
As per ChemAnalyst, Stainless Steel CR Coil prices in the U.S., Germany, and China are expected to rise due to strong purchasing activity meets limited domestic supply, creating upward pressure on the market.