US Stainless-Steel Round Bar Price Declines in Mid-July Amid Weak Demand and Low Feedstock Costs

The price of Stainless-Steel Round Bars shows a bearish market trend amid weaker demand from the downstream automotive industries. The feedstock price, such as Nickel and Pig Iron, was on a lower edge, resulting in the weaker cost support for producing Stainless-Steel Round Bars. The macroeconomic factor concerning Chinese policies has put downward pressure on the price of Stainless-Steel Round Bar in the USA. The demand remained low due to the uncertain price of raw materials such as Iron Ore and Nickel in the global market.

The raw material of Stainless-Steel Round Bars, such as Nickel, has a surplus inventory across the Global market as the extraction rate in the major mining countries such as Australia and Indonesia surged since the end of the second quarter of 2023. The Indonesian mines have been operating at a surging rate creating a surplus in inventory level. The downstream electrical vehicle and battery sector have kept the market sentiment for Nickel mining on a higher edge, leading to a decline in cost support for the Stainless-Steel Round Bar production in the USA. Furthermore, Panoramic Resources Limited, an Australian-based nickel mining and exploration company, has started the Nickel extraction rate in the South American Savannah region. This has put a pessimistic market sentiment for the Stainless-Steel Round Bar producers in the USA amid increased supply of feedstock nickel and Nickel Pig Iron in surfeit in the US spot market. The ongoing commissioning by the Indonesian government over the Nickel Pig Iron has led to a dwindling in its price and a surge in local inventory levels.

The downstream demand for the Stainless-Steel Round Bar across the global market has been declining as the surplus supply and weakening of raw material prices resulted in bearish market sentiment from the buyer's side. The uncertain overseas Chinese market sentiments have been a major factor for declining demand in the US and Global markets. The Chinese government has put various stimuli and measures to stabilize the economic conditions, including the extension of policies to support the real estate market to the end of 2024, announced by the People's Bank Of China. These factors had a major impact on the deteriorating demand for the Stainless-Steel Round Bar in the US spot market.

According to ChemAnalyst, the price of Stainless-Steel Round Bars will remain stable for the upcoming month as the Nickel inventory level will lower as the extraction process is facing various concerns. Meanwhile, the demand from the buyer's side is expected to be bearish. The world trade organization is planning to refurbish the Nickel export from Indonesia. The environmentalists are protesting to decrease mining activity across Indonesian Nickel mines to prevent rising deforestation and avoid mining accidents to safeguard the health of mining workers. These measures would be able to reduce the Nickel mining activity in Indonesia to improve the market sentiment for the Stainless-Steel Round Bar in the US spot market.