With the week ending on 27^th December, the global Steel Wire Rod market in late December displayed varied dynamics across key regions, shaped by shifts in supply, demand, and broader economic conditions. In the USA and China, prices of Steel Wire Rod experienced a decline, amid reduced trading activity due to holiday breaks and distributors’ unsuccessful attempts to stimulate sales through price cuts. Meanwhile, Germany’s Steel Wire Rod market remained stable, with consistent production levels meeting steady demand.

During the last week of December, the price of Steel Wire Rod in the USA declines slightly reflecting a change of 0.2%, influenced by supply and demand imbalance. On the supply side, steel production saw a slight uptick, as reported by the American Iron and Steel Institute. This increase aligns with policy support, as anti-dumping duties on imports from countries like Belarus and China were upheld, fostering a fair competitive environment for domestic producers. However, demand presented a more subdued picture. Seasonal slowdowns and reduced construction activity dampened market sentiment, while export volumes continued to decline. Despite US Purchasing Manufacturing Index increased in December 2024, reflecting increase in manufacturing activity within the region.

The prices of Steel Wire Rod in Germany have remained stable. On the supply side, production levels have been consistent, with local steel manufacturers achieving steady output. Furthermore, there is currently no significant pressure from imports, as domestic producers are effectively satisfying market demand. Additionally, demand for Steel Wire Rod remained stable, bolstered by ongoing industrial activity. While downstream sectors have experienced moderate growth, overall demand for Steel Wire Rod has balanced out, contributing to the stability of pricing in the market.

The Steel Wire Rod market in China experienced a decrease in prices. Despite the central players in the market, such as China Steel Corporation (CSC) and Chung Hung Steel Corporation (CHSC), the steel market has encountered a slowdown. This stagnation is attributed to holiday breaks in both Asia and the West, which have curtailed trading activities. Additionally, distributors’ efforts to drive sales through price reductions have largely proven unsuccessful, suggesting that the market is not reactive to promotional pricing under current conditions. Moreover, transactions across imports from China, South Korea, and Japan remained limited throughout December due to holiday observances and existing inventory pressures. Additionally, import costs have stabilized due to consistent exchange rates, leaving dealers with minimal room for further price reductions. In a notable initiative, CSC, Taiwan's largest carbon steel producer, launched a new project centred around Steel Wire Rod. This effort includes a preferential price reduction of NTD 2,500 (approximately USD 80) per ton while achieving an impressive allocation ratio of 270%. This innovative approach signifies enhancing the value proposition in a tightening market.

According to ChemAnalyst, the global Steel Wire Rod market may face a complex environment, with anticipated sales declines in the US and China driven by subdued purchasing activity. In contrast, Germany's Steel Wire Rod market may demonstrate resilience, bolstered by a well-aligned supply-demand equilibrium.