Global Stainless Steel (Flat) Prices Drop in November Amid Weak Demand and Supply Shifts

The global Stainless Steel (Flat) market faced downward pressure in November, with prices declining across major regions due to shifting supply-demand dynamics. In the USA, Germany and China Stainless Steel (Flat) prices dipped, due to seasonal slowdown and challenging demand environment.

The prices of Stainless Steel (Flat) slight decrease of 1% in China, influenced by imbalance between rising supply and weakening demand has exerted downward pressure on prices. Additionally, demand for Stainless Steel (Flat) faced notable challenges, the new order index for Hebei’s steel sector dropped sharply, reflecting hesitancy in purchasing activity amid broader economic uncertainties and seasonal slowdowns. Moreover, global pressures such as antidumping investigations dampened export prospects, further straining market demand for Stainless Steel (Flat). Manufacturers focused on operational efficiencies and exploring new opportunities, the current downturn in demand highlights cautious sentiment. The growth in supply, coupled with lower costs for inputs like thermal and coking coal, enabled producers to maintain elevated production despite cooling market conditions. Adding to the market dynamics, Hebei Puyang Steel announced plans to shut down a significant 1,580 cubic meter blast furnace for maintenance starting December 10. This closure is expected to last for 30 days and will reduce pig iron production by 4,800 metric tons per day. Such reductions in output could alleviate some supply pressures, depending on demand recovery in subsequent weeks.

The prices of Stainless Steel (Flat) decline by 1% in USA, influenced by shifting supply and demand dynamics. According to the Stainless Steel (Flat) November, reached 1.655 million net tons, representing a 2.0% increase from the previous week when production was recorded at 1.623 million net tons. This increase highlights the resilience of domestic manufacturers, buoyed by government measures like tariffs and incentives aimed at strengthening the industry. At the same time, geopolitical developments, such as Nippon Steel's proposed acquisition of U.S. Steel, have highlighted the critical significance of domestic production. The demand of Stainless Steel (Flat) faces challenges, passenger car sales dropped by 7.2% with electric vehicle sales remain weak despite promotional efforts. Compounding this slowdown in export demand reflects weaker economic conditions, adding pressure to a market already navigating domestic headwinds. 

The prices of Stainless Steel (Flat) slightly decline by 9.0% in Germany, influenced by market fluctuation. Moreover, demand has been muted, particularly from the automotive sector, where passenger car registrations dropped. In November 2024, the total new passenger car registrations in Germany dropped by 0.5% year-on-year impacting demand of Stainless Steel (Flat).  Additionally, lower export volumes have pushed prices down, signalling restrained activity in both domestic and international markets. Furthermore, robust production gains in Germany's steel sector have bolstered availability. Additionally, crude steel output surged in early November 2024, and pig iron production also rose significantly, emphasizing the sector’s strength according to the German steel federation, Wirtschaftsvereinigung Stahl (WV Stahl). Moreover, the broader industry backdrop remains challenging resulting decrease in the prices of Stainless Steel (Flat).

According to ChemAnalyst, demand for Stainless Steel (Flat) in USA may rise due to growing sales in downstream sectors, which could influence pricing. In contrast, in Germany, improved operational efficiencies and a potential increase in supply amidst changing market conditions may lead to a decrease in Stainless Steel (Flat) prices. Meanwhile, in China the prices of Stainless Steel (Flat) may increase due to low supply.