Steel Wire Rod Prices Rise in U.S. and China, While Germany Sees Decline in Early November 2024

With the week ending on 1^st November, witnessed a dynamic shift in global Steel Wire Rod markets, marked by contrasting regional trends. In the U.S. and China, prices rose, breaking a period of cautious market activity. Additionally, Germany, on the other hand, witnessed a decline in Steel Wire Rod prices amid market fluctuations.

The prices of Steel Wire Rod increases, marking a pivotal moment after a prolonged period of cautious activity. Additionally, the U.S. steel supply chain exhibited a reserved approach, marked by hesitancy in restocking and major investments due to uncertainties surrounding upcoming federal policy changes. This period of strategic waiting resulted in moderate supply levels, maintaining stability but limiting the potential for significant surpluses. Conversely, current Vice President Kamala Harris’s approach emphasized sustained federal investment in public infrastructure and sectors like semiconductor manufacturing, which has previously kept steel mills engaged and employment steady, as highlighted by members of the United Steelworkers. Moreover, Steel-related companies and unions largely refrained from political endorsements, yet discussions implied that Harris's policies could result in continued steady production without triggering significant inflation, whereas Trump's potential policy changes hinted at higher supply activity accompanied by potential inflationary pressure. Furthermore, the demand side remained cautious but showed hints of potential growth. Public and private sectors were poised for significant policy-driven impacts depending on the election outcomes.

The prices of Steel Wire Rod in Germany decrease due to market fluctuation. Additionally, Germany’s Steel Wire Rod supply scenario presented a mixed picture during this period. According to Wirtschaftsvereinigung Stahl (WV Stahl), crude steel output in Germany increased.  Despite the uptick in production, the market faced challenges. Moreover, demand for Steel Wire Rod in Germany and broader Europe remained weak throughout October. Furthermore, some buyers were reluctant to make purchases at elevated levels, leading to minimal trading activity. Key sources noted that trading for Steel Wire Rod was quiet, as buyers waited for clearer market signals. Additionally, other Asian suppliers were present but largely considered competitive by local buyers. This competitive import environment added to the downward pressure on domestic prices.

The price of Steel Wire Rod in China rose, driven by fluctuations in the market and a series of supportive domestic measures. Moreover, the supply of Steel Wire Rod in late October showcased a stable trend, maintaining adequate availability to support upward price movements. This stability was underpinned by China's strategic efforts to bolster the steel industry, including government-backed stimulus initiatives aimed at revitalizing economic activity. Additionally, the Steel Wire Rod market benefited from the recovery in China’s manufacturing sector, which returned to expansion in October after five months of contraction. This rebound was marked by a surge in new orders and consumer spending on goods such as cars and home appliances, spurred by government subsidies. The home appliance, shipbuilding, and clean energy sectors played pivotal roles in bolstering Steel Wire Rod demand.  

As per ChemAnalyst, the Steel Wire Rod market in the USA, Germany, and China is anticipated to remain stable, with a balance between demand and supply.