Steel Rebar Market April 2024: Marginal Rise in US and China, opposite to Germany

As of April 12th, Steel Rebar in the US domestic market saw a slight increase, partly influenced by boosted exports from countries like Mexico and Canada. Contrastingly, the German market witnessed a decrease in Steel Rebar prices, reflecting a broader pessimism in European long steel markets due to subdued demand and pricing uncertainties. This downturn is attributed to a lack of ongoing construction projects, coupled with fluctuating environmental regulations and raw material costs, such as a drop in Pet coke prices in Germany. On the other hand, China saw an uptick in Steel Rebar prices from Shanghai, driven by increased demand in the manufacturing sector, particularly in construction steel. This surge followed China's manufacturing PMI, signalling a positive outlook for the construction steel sector despite short-term market caution among Chinese firms.

By the close of the week ending on April 12th, there was a marginal rise of 0.2% in Steel Rebar in the US domestic market. This slight escalation was fuelled in part by marginal increased exports of Steel Rebar from nations like Mexico and Canada, where demand remains robust. According to statistics sourced from FRED, the Producer Price Index for Metals and Metal Products, particularly Hot Rolled Steel Bars, Plates, and Structural Shapes, climbed by 0.80% in March compared to the previous month. Furthermore, Total Construction Spending for Residential projects in the United States saw a 0.71% surge in February as opposed to January.

In the local German market, the price of Steel Rebar experienced a 0.5% decrease. Across European long steel markets, there was a prevailing sense of pessimism concerning short and long-term demand and pricing trajectories. Demand of Steel Rebar remained sluggish, resulting in minimal trading activity due to this persistent negative sentiment. Producers, grappling with continuous profit declines, were cautious about extending discounts. The current market downturn can largely be attributed to a dearth of ongoing construction projects and Steel Rebar prices, coupled with fluctuating environmental regulations and raw material expenses such as the 1.9% drop in Pet coke prices in Germany during April.

Steel Rebar prices in China experienced a 1% uptick from Shanghai, driven by heightened demand due to the recovery in the manufacturing realm, especially in construction steel. This surge came after China's manufacturing PMI surged to 50.8% in March, climbing by 1.7% from the prior month and exceeding industry standards. The National Bureau of Statistics of China observed a resurgence in the manufacturing sector's environment, signalling a positive forecast for the construction and Steel Rebar. The increase in fresh construction ventures, aided by better weather conditions and reduced financial stress, is anticipated to uphold this upward trajectory, albeit with some market wariness among Chinese construction firms in the short term.

According to ChemAnalyst, In the United States, a robust and healthy demand could drive an uptick in Steel Rebar prices within the US market. Rising freight charges, stemming from tensions in the Middle East, may also contribute to a global increase in Steel Rebar prices. Meanwhile, in Germany, a combination of low inventories and growing demand from the downstream infrastructure sector could fuel an increase in prices. Similarly, China is experiencing a rise in Steel Rebar prices due to heightened demand from the construction sector. This surge in construction sector demand, bolstered by increased purchases, is propelling the growth rate of Steel Rebar.