Global Steel Wire Rod Prices Resonate, Decline in China and the USA, Rises in Europe

With the week ending on June 7^th, the US Steel Wire Rod market saw a decrease in prices due to factors like lowered production volumes. Market pressures intensified with investigations into pricing practices, leading to overall falling prices. Additionally, German Steel Wire Rod prices increased due to supply constraints and demand dynamics. Meanwhile, China experienced a decrease in Steel Wire Rod prices due to low demand. Market instability and sluggishness further impacted pricing in China.

During the week ending on June 7^th, the US Steel Wire Rod market experienced a slight decrease of 0.5% in prices, driven by various key factors. Increased supply due to high raw material inventory and high interest rates, resulted in reduced purchasing activity. This rise in supply, combined with higher freight costs affecting trade routes between China/East Asia and North America, led to diminished buyer interest for buying steel wire rod. Additionally, JSW Steel USA Ohio reported a notable decrease in production volume, reflecting lower market purchasing activity. Moreover, The US Department of Commerce's investigation into South Korean producer Posco's pricing practices further intensified market pressures. Meanwhile, Market conditions were worsened by subdued activity among major US steelmakers like Nucor and Cleveland-Cliffs, indicating weak market demand. Furthermore, FRED data showed a 1% decline in the Producer Price Index for Total Manufacturing Industries in May, signalling reduced manufacturing activity in the US.

The German Steel Wire Rod market saw a slight price increase of 0.6% caused by supply constraints and varying demand dynamics. Limited raw materials, scrap availability, higher energy costs, and geopolitical tensions affecting shipping led to supply issues. While the construction sector saw reduced buying, there were positive trends in manufacturing and stable export sales to China and the US. Additionally, Data from the Federal Statistical Office (Destatis) showed a 3.3% decrease in producer prices for industrial goods sold domestically in April 2024, with May likely to continue the downward trend due to reduced manufacturing activity in the German market.

As of June 7^th, In China Steel Wire Rod prices decreased by 0.4% due to low demand. China saw a decline in Steel Wire Rod supply as mills replenished stocks before the Dragon Boat Festival. Additionally, Challenges in the real estate sector and Cargill's halt in steel wire rod trading in China further decreased market demand. Domestic demand remained weak, with minor improvements in the construction sector countered by declines in the service sector and new orders index. Additionally, Brazil's anti-dumping measures affected international demand. China's manufacturing PMI fell in May, indicating a drop in industry conditions compared to the previous month.

According to ChemAnalyst, changes in pricing trends may occur in different regions. In the United States, prices may get affected by seasonal increases in demand, particularly in sectors like automotive. On the other hand, Germany is expected to see a rise in the cost of Steel Wire Rod due to higher production costs, including freight charges and raw material expenses. Meanwhile, China is likely to experience a boost in demand from the construction sector, leading to higher purchases and prices. These varying market dynamics demonstrate the complexity of factors influencing global Steel Wire Rod pricing trends, emphasizing the importance of closely monitoring regional developments for informed decision-making.