For the Quarter Ending September 2024
North America
In Q3 2024, the North American Cold Rolled Sheet market experienced a period of decreasing prices, influenced by several significant factors. The market was primarily impacted by a supply and demand imbalance, with excess supply levels leading to downward pressure on prices. Weak demand from key sectors such as automotive and construction played a crucial role in driving prices lower. Additionally, global market dynamics, including increased imports and trade uncertainties, further contributed to the pricing decline.
In Mexico, the market saw the most significant price changes, with prices dropping compared to the same quarter last year. The quarter-on-quarter charge recorded a decrease, highlighting the continued negative trend. The price comparison between the first and second half of the quarter showed a decline, reflecting the sustained downward trajectory.
Additionally, the excess supply, coupled with weakening demand, is contributing to the overall pricing decline in the Cold Rolled Sheet market. Furthermore, the latest quarter-ending, signalling a persistently negative pricing environment in the region.
Europe
In Q3 2024, the Europe Cold Rolled Sheet market witnessed a continued decline in prices, reflecting a challenging environment marked by weak demand and oversupply conditions. Several factors influenced market prices, including sluggish demand in key sectors like automotive and construction, leading to subdued consumption of Cold Rolled Sheet. Moreover, the market faced headwinds from global economic uncertainties, ongoing conflicts, and regulatory challenges, all contributing to the negative price trends. Germany, experiencing the most significant price changes in the region, saw a notable decrease in Cold Rolled Sheet prices. Moreover, Overall trends indicated a negative change from the same quarter last year, with a further decline from the previous quarter in 2024.Additioanly, the correlation in price changes between the first and second half of the quarter remained decline, indicating a consistent downward trajectory. Moreover, demand for Cold Rolled Sheet in Germany continues to be weak, which is grappling with regulatory uncertainties. The quarter-ending in Germany, underscoring the prevailing negative sentiment and challenging market conditions.
APAC
The third quarter of 2024 for Cold Rolled Sheet in the APAC region has been marked by a significant decrease in prices, driven by a multitude of factors. The market has experienced a decline from the same quarter last year, with a further decline from the previous quarter. Additionally, the overall trend has been negative, with a decrease in pricing between the first and second half of the quarter.
China, as a key player in the region, has seen the maximum price changes, with prices declining consistently. Moreover, market dynamics have been influenced by a combination of increased supply, weakened demand, and global economic uncertainties. Additionally, the Cold Rolled Sheet market in China has faced challenges in logistics, raw material costs, and international trade dynamics. Furthermore, Seasonal factors, such as the off-season period and adverse weather conditions, have also played a role in the declining prices.
The latest quarter-ending price for Cold Rolled Sheet in China, reflecting the overall decreasing sentiment in the pricing environment.
For the Quarter Ending June 2024
North America
During Q2 2024, the Cold Rolled Sheet (CRS) market in North America experienced a downward trend in pricing, driven primarily by an oversupply and diminishing demand across various sectors. The quarter saw a consistent decrease in CRS prices, influenced predominantly by high inventory levels, reduced construction activity, and a sluggish manufacturing sector. Elevated interest rates continued to suppress purchasing activity, further exacerbating the imbalance between supply and demand. Geopolitical tensions and economic uncertainties also contributed to a negative market sentiment, leading to cautious behaviour among buyers and restrained restocking efforts by service centres.
In the USA, the decline in Cold Rolled Sheet prices was particularly pronounced. An overall bearish market sentiment prevailed throughout the quarter, accentuated by significant price adjustments from major steelmakers like Nucor. The construction sector's continued sluggishness, coupled with high interest rates, played a critical role in reducing demand. Moreover, the decrease in domestic crude steel production added to the extensive oversupply, further pushing prices downward. The correlation between reduced demand and high inventories was evident, leading to a 2% price drop in the latter half of the quarter compared to the first half.
The decreased pricing environment culminated in the latest quarter-ending price for CR Sheet, highlighting a generally negative pricing environment. The overall sentiment for Q2 2024 was undeniably negative, marked by continuous price declines and a challenging market landscape.
Europe
The second quarter of 2024 has seen stable pricing for Cold Rolled Sheet (CRS) in the European region, shaped by various factors. The market has experienced balanced dynamics, with supply and demand remaining largely congruent. A steady influx of raw materials, coupled with moderate production levels, has contributed to maintaining equilibrium in prices. Additionally, the market has not been significantly impacted by external economic shocks or geopolitical tensions, allowing for a consistent pricing environment.
Throughout the quarter, prices remained consistent between the first and second halves, underscoring the stable market environment. This stability indicates a balanced market where supply meets demand without significant disruptions. The CRS price for (Germany) concluded the quarter, reflecting a stable pricing trend.
Overall, the pricing environment for CRS in Germany and Europe has been stable, supported by balanced supply-demand dynamics and strategic market behaviour. This equilibrium has fostered a consistent market sentiment that is neither overly positive nor negative, ensuring a predictable and steady pricing trajectory.
APAC
The second quarter of 2024 has been marked by a persistent decline in Cold Rolled Sheet (CRS) prices across the Asia-Pacific (APAC) region, driven by several significant factors. The overarching sentiment has been negative due to an imbalance in supply and demand. An oversupply situation, exacerbated by high production rates and sluggish downstream sectors, has been the primary force pushing prices downward. Economic instability and a tepid recovery in major sectors such as construction and automotive have further dampened demand. Steel manufacturers, facing high inventories, have increasingly resorted to exporting surplus stock, often at marginal profits, thus contributing to a competitive pricing environment.
In Malaysia, the impact has been particularly pronounced. The country has witnessed the steepest price changes within the region, highlighting a significant downward trend. Seasonal factors and subdued market sentiments have played critical roles in this price decline.
Concluding the quarter, for CR Sheet in Malaysia declined. This consistent decrease reflects a negative pricing environment underscored by overcapacity, weak demand, and competitive international markets, positioning the industry in a challenging landscape with no immediate signs of recovery.
For the Quarter Ending March 2024
North America
The first quarter of 2024 brought significant challenges to the Cold Rolled Sheet market in the United States, marked by a notable decline in prices for Cold Rolled Sheet. This decline was influenced by various factors that impacted the market dynamics. One of the primary factors contributing to the price decline was an oversupply of Nickel, a key component in production. The oversupply of Nickel, combined with decreased demand from downstream industries such as construction and automotive, exerted downward pressure on prices. In Q1 2024, the USA experienced noteworthy price changes, with prices for Cold Rolled Sheet witnessing a notable drop. Reduced demand from downstream industries, particularly in construction and automotive sectors, along with falling Nickel prices, drove this decline. The economic downturn negatively impacted these industries, leading to a decrease in demand for Cold Rolled Sheet. Both domestic and international buyers exercised caution, further suppressing demand and contributing to the downward price trend. Overall, the pricing environment for Cold Rolled Sheet in North America during Q1 2024 was bearish, characterized by challenges stemming from oversupply of Nickel, reduced demand from downstream industries, and uncertainties in the macroeconomic landscape. Despite expansions in mining capacity and discoveries of significant Nickel deposits, these factors were insufficient to offset the overall downward trend in prices.
APAC
The first quarter of 2024 for Cold Rolled Sheet (CR) in the APAC region has been characterized by overall stability in pricing dynamics, with minimal fluctuations observed across the market. While slight price increases were witnessed in China during February, driven by a modest recovery in demand from the construction and housing sectors, cautiousness among buyers and a contraction in Chinese manufacturing activity tempered the extent of price growth. The Chinese spot market also experienced a mild tightening in supply during the Lunar New Year holidays, further influencing pricing dynamics. However, challenges persisted with escalating sea freight costs due to conflicts in the Red Sea, posing a threat to trade activity in the region. Despite these challenges, overall demand for Cold Rolled Sheet remained moderate throughout the APAC region. The resumption of construction activities after the Lunar New Year holidays in China contributed to a slight uptick in demand. Nevertheless, shifts in consumer spending patterns from goods to services in Europe and the United States impacted imports and trade dynamics, influencing overall market conditions. While specific percentage changes compared to the same quarter last year were not provided, the data indicates minimal price changes from the previous quarter in 2024, underscoring the prevailing stability in the pricing environment for Cold Rolled Sheet in the APAC region.
Europe
The first quarter of 2024 presented significant challenges for the Cold Rolled Sheet market in Europe, marked by a downward trend in prices. Several factors contributed to this decline, notably an oversupply situation that plagued the market. Furthermore, the abundant availability of feedstock, such as nickel and steel scrap, added to the oversupply and reduced production costs, further intensifying the downward pressure on prices. Demand for Cold Rolled Sheet remained subdued throughout the quarter, particularly in the construction sector. The anticipation of a recession in key economies like Germany dampened demand further, resulting in a decrease in orders. Elevated interest rates and construction costs also contributed to the overall reduction in demand. In Germany specifically, echoing the broader downward trend across Europe. This decrease can be attributed to the same factors mentioned above, including high supplies and low demand in the construction sector. Overall, the pricing environment for Cold Rolled Sheet in Europe during the first quarter of 2024 was challenging, with prices facing significant downward pressure due to oversupply and reduced demand. The market outlook remains uncertain, with ongoing uncertainties and challenges expected to continue impacting the industry.
