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.
