For the Quarter Ending December 2024
North America
The fourth quarter of 2024 saw a notable downward trend in prices across North America, with particular emphasis on the U.S. market. The quarter concluded with AL6XN sheet (3 mm) prices at USD 25,651/MT DEL Houston, marking a 2% decrease from Q3 2024.
Moreover, the price decline was primarily driven by an imbalance between supply and demand fundamentals. Supply chains demonstrated increased availability of material, stemming from both higher import volumes and shifts in domestic production patterns. This supply expansion occurred against a backdrop of weakening demand, creating downward pressure on prices.
Additionally, Key end-user sectors, particularly automotive and manufacturing, showed reduced consumption patterns. The manufacturing sector's performance was especially significant, with decreased factory orders contributing to the sluggish demand environment. This sectoral weakness played a crucial role in maintaining the bearish price trend throughout the quarter. While the price decline was observed across North America, the U.S. market experienced the most pronounced effects. The combination of increased material availability and subdued industrial activity created a consistently bearish pricing environment, making Q4 2024 a challenging period for market participants.
Europe
The European AL6XN market experienced a downward price trajectory during Q4 2024, with prices settling at USD 21,740/MT FD-Werdohl in Germany by quarter-end. This pricing environment reflected broader regional challenges and shifting market fundamentals. Additionally, the quarter was characterized by an oversupply situation, as global steel dynamics led to increased material availability across Europe. This supply expansion occurred simultaneously with weakening demand, creating significant downward pressure on prices. Germany, as the region's key market, experienced the most pronounced effects of these market conditions. Moreover, multiple sectors showed reduced consumption patterns, particularly in construction and automotive industries. The decrease in industrial activity across Europe, especially in Germany, contributed to the weakening demand scenario. Economic challenges and evolving consumer behaviour patterns further amplified this trend. While the entire European region faced pricing challenges, Germany emerged as the focal point of market dynamics. Despite some operational disruptions at production facilities, the persistent oversupply coupled with decreased demand maintained downward pressure on prices throughout the quarter.
APAC
The APAC region's AL6XN market faced significant downward pressure during Q4 2024, with prices concluding at USD 14,103/MT Ex-Shanghai in China. This represents an 8% decline from Q3 2024, reflecting substantial market challenges across the region. In China, as the region's dominant market, experienced the most pronounced price movements. The quarter was characterized by surplus production capacity, leading to increased export volumes at competitive prices. This oversupply situation, coupled with operational disruptions at mining facilities, created a complex market environment affecting regional pricing structures. Additionally, key end-user sectors, particularly construction and automotive, showed weakened demand patterns. China's domestic demand slowdown had ripple effects across global markets, creating additional downward pressure on international prices. While the entire APAC region faced pricing challenges, China's market conditions proved particularly influential. Despite maintaining resilient production levels, the combination of surplus capacity and weakened demand created persistent downward pressure on prices. The market experienced more pronounced decreases between the first and second half of Q4, reflecting ongoing adjustments to challenging market conditions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North America Region witnessed stable prices for AL6XN, reflecting a balanced and consistent pricing environment. Several factors influenced market prices during this quarter. The supply chain remained robust, with consistent production levels and increase in demand. Moreover, Seasonal trends and market dynamics played a role in increasing the prices. Additionally, the correlation in price changes between different regions contributed to the overall equilibrium in pricing. The manufacturing sector also contributed to the rising demand for AL6XN, as factory orders and steel exports witnessed an increase in volumes.
In the USA, where the most significant price changes were observed, the market experienced bullish prices. Moreover, the quarter saw a 4% increase from the previous quarter, with prices remaining consistent throughout. Furthermore, the AL6XN supply in the USA decreased due to weaker import dynamics and shifts in domestic production. Additionally, On the other hand, the demand increased, particularly in the automotive and manufacturing industries, leading to a price rise in the market.
The quarter-ending price for AL6XN sheet (3 mm) DEL Houston in the USA stood at USD 26651/MT, indicating a firm and stable pricing scenario.
Europe
In Q3 2024, the Europe Region witnessed an increase in AL6XN pricing. Several factors contributed to this upward trend. Additionally, the region experienced a decrease in supply, driven by global steel dynamics and a significant increase in demand for products. This influx of supplies puts pressure on local suppliers, leading to an increase in prices. Additionally, demand for AL6XN saw a incline, influenced by economic challenges and changing consumer behavior, particularly in sectors like construction and automotive.
Meanwhile, Germany experienced the most significant price changes in the region during the quarter. The market faced supply constraints and an increase in demand, impacting prices. Moreover, the overall trend in pricing for AL6XN in Germany reflected a consistent increase, with fluctuations observed between the first and second half of the quarter. Additionally, the market has shown resilience, with an increase in demand for AL6XN in German market, reflecting a positive shift in industrial activity.
Despite some disruptions and plant shutdowns, the quarter-ending price for Al6XN Sheet (3 mm) FD-Werdohl in Germany stood at USD 24671/MT, indicating a challenging pricing environment characterized by decreasing prices.
APAC
In Q3 2024, the APAC region experienced a challenging period for AL6XN pricing, marked by a significant decrease in prices. Various factors contributed to this downward trend, including weakening demand in key sectors such as construction and automotive, oversupply in the market, and global economic slowdown. The quarter saw a notable -17% decrease from the previous quarter, reflecting the bearish market sentiment.
Meanwhile, China witnessed the most substantial price changes, with a drop between the first and second half of the quarter. Additionally, the country's steel market faced surplus production capacities, leading to increased exports at competitive prices, further declining global prices. Moreover, Furthermore, the global steel market is feeling the repercussions of China's weakening demand, leading to downward pressure on prices internationally.
The quarter-ending price for AL6XN plate Ex Shanghai in China stood at USD 14955/MT, highlighting the prevailing negative pricing environment. Despite some resilience in production levels, disruptions in mining facilities and plant shutdowns added operational complexities and cost pressures, contributing to the overall challenging market conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the AL6XN market in North America experienced significant price increases, driven by multiple intertwined factors. The quarter was marked by persistent supply constraints, notably due to limited raw material availability and rising costs of stainless and alloy steel scrap. Increased shipping expenses from East Asia further compounded the supply-side pressures. These factors collectively resulted in elevated prices for AL6XN.
In the USA, the market saw the most substantial price changes, influenced by robust demand across various sectors. The automotive industry demonstrated a notable uptick in new vehicle sales, contributing to the heightened demand for AL6XN. The manufacturing sector also showed signs of recovery, with increased orders for durable goods and stainless-steel products. This surge in demand outpaced the available supply, leading to a bullish pricing environment.
Seasonal trends indicated a correlation between higher construction activities and increased AL6XN prices. The second half of Q2 witnessed a more pronounced price increase compared to the first half, reflecting a 5% rise. This trend underscores the sustained demand and limited supply dynamics at play.
The latest quarter-ending price for AL6XN sheet (3 mm) DEL Houston in the USA reached USD 26079/MT, indicating a stable yet positive pricing environment. This consistent upward trend reflects the ongoing supply-demand imbalances and the inflationary pressures on raw material and shipping costs.
Overall, Q2 2024 has been characterized by a positive pricing environment for AL6XN, driven by strong demand and persistent supply constraints. The market dynamics suggest a continued upward trajectory in prices, underpinned by robust industrial activity and limited raw material availability.
Europe
In Q2 2024, the European market for AL6XN experienced considerable price increases, driven by supply constraints and escalating production costs. The limited availability of raw materials and scrap significantly impacted production volumes, thereby exerting upward pressure on prices. The market also faced challenges from rising energy costs and extended supplier delivery times, exacerbated by ongoing geopolitical tensions and supply chain disruptions. Additionally, heightened shipping costs due to prolonged transit times further strained the market.
Focusing on Germany, which witnessed the most pronounced price changes, the situation reflects a bullish market sentiment. The German AL6XN market demonstrated a notable price inflation of 3% from the previous quarter, consistent with an overall trend of increasing prices. Seasonal factors, such as heightened demand from the construction sector and a recovering automotive industry, have played pivotal roles in influencing price dynamics. The second half of the quarter saw a continued upward trajectory, with prices rising by an additional 3% compared to the first half.
Germany's AL6XN market showcased a robust response to the evolving supply-demand dynamics, culminating in a quarter-ending price of USD 24823/MT for AL6XN Sheet (3 mm) FD-Werdohl. Despite the challenges posed by supply-side disruptions and escalating costs, the pricing environment has been predominantly positive, reflecting strong market demand and constrained supply. This period underscores the resilience of the German market in navigating complex economic and industrial pressures, maintaining a consistent upward price trend throughout Q2 2024.
APAC
In Q2 2024, the pricing landscape for AL6XN in the APAC region has experienced a notable downward trend, driven by several key factors. The supply chain has faced significant disruptions, including plant shutdowns and logistical challenges, which have contributed to increased shipping costs and extended delivery times. Inventory levels have remained high, adding to the supply glut and further pressuring prices downward. The demand for AL6XN has also softened due to geopolitical tensions and economic uncertainties, which have curbed industrial activities and infrastructure projects. Additionally, fluctuations in raw material costs, particularly nickel and chromium, have impacted production economics, leading to reduced market confidence and lower pricing stability.
Focusing on China, where the most pronounced price changes have occurred, the market has seen a consistent decline. Seasonal factors, such as reduced construction activities during certain periods, have exacerbated the downward pressure on prices. The overall trend has been negative, reflecting a bearish market sentiment throughout the quarter. Compared to the same period last year, prices have shown a significant decrease. From the previous quarter in 2024, prices have declined by 3%, when comparing quarter first comparing with quarter second.
The quarter-ending price for AL6XN plate Ex Shanghai in China was USD 18020/MT, underscoring the continued negative sentiment in the market. Despite some intermittent demand spikes, the pricing environment has predominantly been unfavourable, marked by persistent supply chain issues and a cautious economic climate.
For the Quarter Ending March 2024
North America
AL6XN pricing in the North America region for Q1 2024 has seen a stable to slightly positive pricing environment. Several factors have influenced market prices during this quarter. The decline in steel import permits, as shown in SIMA data from the Commerce Department, has resulted in reduced inventories of steel, including AL6XN. Despite decreasing inventories, increased demand from the automotive and infrastructure sectors has raised AL6XN prices, reflecting the balance between inventory reductions and sectoral growth.
In the USA, AL6XN prices experienced a slight decline in January due to oversupply and reduced demand. However, prices stabilized in February and March as demand slightly increased in the steel market. The automotive industry has shown higher demand for steel and nickel due to pollution reduction efforts and the growth of electric vehicles. Additionally, the higher cost of importing steel and nickel domestically, driven by high FOB prices from South Africa and issues with the Panama Canal, has contributed to premium prices for AL6XN.
Overall, the pricing environment in Q1 2024 has been moderate, with supply and demand factors influencing AL6XN prices. While there has been some stability in prices, the market remains sensitive to changes in inventory levels and sectoral demand. The latest quarter-ending price for AL6XN sheet (3 mm) DEL Houston in the USA is USD 24964/MT.
APAC
In the APAC region, the AL6XN pricing in Q1 2024 has been influenced by various factors. Overall, the market sentiment has been stable, with moderate supply and demand dynamics. In China, which has seen the maximum price changes, the AL6XN market has experienced a bearish sentiment. The supply has been moderate, with ample availability of AL6XN due to excess nickel feedstock and increased steel production capacity. However, oversupply from China and Vietnam has negatively impacted the local market, leading to lower prices. Disruptions in the Suez Canal and trade routes have also extended lead times and increased freight charges, adding to the challenges faced by Chinese manufacturers. The demand has been moderate, with reduced consumption in downstream sectors such as construction and automotive. The uncertain macroeconomic conditions and decreased trade activity in European and US markets have further dampened demand for AL6XN.The latest quarter-ending price for AL6XN plate Ex Shanghai in China is USD 19614/MT. Overall, the AL6XN pricing in the APAC region, particularly in China, has been influenced by oversupply, reduced demand, and trade disruptions. The market sentiment has been stable prices and limited fluctuations.
Europe
The AL6XN pricing in the European region for Q1 2024 has been influenced by various factors. Overall, the market sentiment has been stable, with moderate supply and demand dynamics. Germany has experienced significant price changes. In Q1 2024, the supply of AL6XN remained stable, but disruptions in the supply chain were observed. Surging nickel prices on the LME and SHFE, as well as potential sanctions on Russian exports, impacted availability. Variations in mill output and trade delays via the Suez Canal further reduced availability, driving prices up in the German spot market. Demand for AL6XN slightly rose, driven by growth in downstream industries and an uptick in euro area construction production. The shift in demand dynamics, influenced by higher nickel costs and steel needs in construction, led to increased consumption in the German automotive sector, pushing prices higher. In terms of overall trends, the price of AL6XN in Germany has seen a slight decrease in January 2024, followed by a slight increase in February and March. The pricing environment has been influenced by factors such as oversupply, slight increase in demand, and market uncertainties. The latest quarter-ending price for AL6XN in Germany is USD 23973/MT of Al6XN Sheet (3 mm) FD-Werdohl. Overall, the pricing environment for AL6XN in Q1 2024 in Germany has been positive, with prices experiencing slight fluctuations but remaining relatively stable.
