With the week ending on January 24^th, in USA and Germany, Steel Rebar prices edged higher as supply-side disruptions intensified. Meanwhile, the Chinese Steel Rebar market remained stable, with domestic producers efficiently matching demand. 

The prices of Steel Rebar in USA slightly increase by 0.3% during the week. The supply dynamics for Steel Rebar in the U.S. depict a nuanced scenario. Moreover, domestic raw steel production for the week ending on 24 January, registered at 1.641 million net tons, indicating a slight decrease of 0.2% from the prior week. This figure shows decrease in supply side of Steel Rebar.

Moreover, when examining demand, the ongoing market situation for Steel Rebar indicates a certain level of stability in consumption. Adding another layer to the supply landscape, Luxembourg-based steel producer Aperam SA has successfully completed the acquisition of U.S.-based Universal Stainless & Alloy Products. The acquisition, finalized after obtaining necessary regulatory approvals and stockholder consent, bolsters Aperam’s strategy to expand its presence in the U.S. market.

The prices of Steel Rebar in Germany increase by 0.3% due to supply and demand imbalance. Additionally, the supply landscape for Steel Rebar in Germany is currently marked by challenges caused primarily by surging electricity prices. Riva Hennigsdorfer Elektrostahlwerke, located near Berlin, is bracing for a prolonged shutdown of its operations. This potential suspension is a direct response to escalating energy costs, which have constrained the ability to maintain production levels.

In a similar vein, Feralpi’s Ries plant has recently experienced a two-day operational halt due to soaring spot electricity prices. These interruptions, stemming from unfavourable weather conditions that led to low wind and solar generation, have resulted in substantial financial losses for the company. Such repeated outages challenge the consistency of Steel Rebar supply in the market. Additionally, demand in the Steel Rebar market remains relatively moderate.

The prices of Steel Rebar in China remain stable during the week. Domestic producers have effectively met the current demand, mitigating any significant pressure from imports. This consistent output is crucial as it lays the groundwork for market stability. Notably, Baosteel is executing an extensive modernization project at its Baoshan plant in Shanghai, aimed at enhancing the efficiency and competitiveness of the mill. Additionally, the HBIS XuanHua Iron and Steel Group has commenced operations at a new slab caster at their low-carbon-emission facility in Hebei Province. This slab caster, which boasts an annual capacity of 1.5 million metric tons, was developed to produce slabs suitable for a variety of steel grades. The facility emphasizes minimizing environmental impact, as it is part of the world’s first hydrogen-based iron- and steelmaking operation.

According to ChemAnalyst, Steel Rebar prices in the USA and Germany are anticipated to trend upward in the near term, driven by persistent supply constraints and production disruptions. Meanwhile Steel Rebar prices in China are projected to soften in the near term, as seasonal demand slowdown ahead of the Lunar Festival curbs purchasing activity.