For the Quarter Ending September 2024
North America
In Q3 2024, Galvanized Plain Sheet pricing in North America saw a significant increase, from August driven by a combination of factors. Market dynamics were influenced by rising feedstock costs, strategic pricing adjustments by steel mills, and reduced import levels.
These elements collectively contributed to the uptick in prices. Additionally, the emphasis on domestic production, along with ongoing pricing strategies, played a crucial role in shaping the pricing environment for Galvanized Plain Sheet. Mexico experienced the most pronounced price changes within the region during this quarter. The market showed considerable fluctuations, reflecting both internal and external influences such as labour disputes, trade regulations, and global economic conditions.
Despite challenges, the overall trend in pricing exhibited an upward trajectory, with notable changes observed compared to the same quarter last year. Moreover, the quarter-on-quarter change reflected a significant decrease highlighted fluctuations within the quarter itself. The latest quarter-ending price of USD 1287/MT for Hot Dipped Galvanised Sheet (1 mm) CFR Veracruz in Mexico reflected the culmination of these varied influences, ultimately contributing to a positive pricing environment characterized by increasing sentiments.
Asia-Pacific
In Q3 2024, the Galvanized Plain Sheet market in the APAC region experienced a significant decline in prices. Various factors influenced this downtrend, including weakened demand in the construction sector, oversupply from imports, and intense competition from Chinese steel mills. These challenges have led to pricing pressures and a bearish sentiment in the market.
China, in particular, has seen the most pronounced price changes in the region. The quarter recorded a decrease compared to the same period last year, reflecting ongoing market challenges. Moreover, the quarter-on-quarter change further underscores the downward trend putting more pressure on the pricing trend.
Notably, the second half of the quarter saw a sharper decline compared to the first half, indicating increasing price pressures. The latest quarter-ending price for Hot Dipped Galvanised Coil (Z100-1 mm) in China stands at USD 568/MT, highlighting the persistent negative pricing environment in the region. Overall, the market has faced a challenging quarter marked by continuous price decreases and uncertainties in demand dynamics.
Europe
In Q3 2024, the German Galvanized Steel market faced persistent downward pressure, characterized by declining prices and weak demand across major end-user sectors. The quarter began with price drops in July, continued through August, and saw a notable 1.3% decrease in Hot Dipped Galvanised Coil prices during September's fourth week.
The market's performance was significantly influenced by declining Manufacturing PMI, which hit a three-month low in July, alongside a struggling construction sector marked by falling new orders and a troubled automotive industry that saw a 27.8% drop in new car registrations in August. While crude steel production showed a marginal 0.5% increase, hot-rolled steel production decreased by 3% in August, reflecting the market's mixed dynamics.
The industry grappled with multiple challenges, including market oversupply, intense competition from imports (particularly from Russia, South Korea, and India), and reduced demand from key sectors. In response, mills considered production cuts and offered flexible lead times, while downstream users focused on inventory reduction. The overall market sentiment remained cautious, with participants expressing uncertainty about recovery prospects amid ongoing structural challenges in both domestic and export markets. The quarter ended with the price of Hot Dipped Galvanised Coil (1 mm) FD-Ruhr in Germany at USD 764/MT, indicating a prevailing downward trend in the pricing environment.
South America
In Q3 2024, the South American region witnessed a significant decline in Galvanized Plain Sheet (HDG) prices, with Brazil experiencing the most notable changes. The market was influenced by various factors leading to decreased prices. One key factor was the surplus supply of imported materials, particularly from China, which exerted downward pressure on prices.
Additionally, weak demand in the construction and automotive sectors contributed to the price decrease. The ongoing trade tensions and anti-dumping measures on steel products globally further impacted the pricing environment. In Brazil specifically, the market trends reflected a consistent negative sentiment throughout the quarter. Prices saw a substantial decrease compared to the same quarter last year. Moreover, the quarter-on-quarter comparison revealed a decrease, with a notable price difference between the first and second halves of the quarter. The quarter ended with the price of Hot Dipped Galvanized Sheet (1 mm) CFR Santos in Brazil at USD 681/MT, indicating a prevailing downward trend in the pricing environment.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has witnessed a pronounced decline in Galvanized Plain Sheet pricing across the North American market, influenced by a confluence of factors fundamentally reshaping the landscape. A primary driver of this downturn has been the persistent reduction in the prices of key feedstock materials such as Cold-Rolled Coil (CRC) and Hot-Rolled Coil (HRC). The bearish trend in HRC, exacerbated by mill discounting practices and subdued steel demand, has been particularly impactful.
Additionally, an influx of imports, particularly from Southeast Asian markets, has intensified competitive pressures, sparking concerns about potential dumping and further destabilizing domestic prices. Focusing on the USA, the market has experienced the most significant fluctuations, with a marked 2% price decrease from the same quarter last year and a 3% decrease from the previous quarter in 2024. This descent is underscored price reduction between the first and second halves of the quarter, reflecting an ongoing negative sentiment. Seasonality has played a role, with traditionally lower demand in the early summer months exacerbating the downward trend.
The correlation between increased import volumes and pricing pressure has been evident, with local mills struggling to maintain price levels amidst declining orders and heightened inventories. The quarter-ending price for Hot Dipped Galvanised Coil, illustrating a consistent decline. The overall pricing environment has been negative, driven by an imbalance in supply-demand dynamics, import competition, and weakening feedstock costs. This period has highlighted the challenges faced by the industry in stabilizing prices amidst external pressures and fluctuating demand, marking a challenging quarter for North American Galvanized Plain Sheet producers.
Asia-Pacific
In Q2 2024, the Galvanized Plain Sheet market in the APAC region exhibited a consistent downward pricing trend. This quarter has been particularly challenging for the sector, with several contributing factors leading to this decline. Key influences included subdued demand from major consumer industries such as construction and automotive, exacerbated by economic uncertainties and competitive pricing pressures from Chinese suppliers.
Additionally, high inventory levels and weak export markets further weighed on prices, along with geopolitical tensions affecting global trade dynamics. The combined effect of these factors resulted in a pronounced bearish sentiment throughout the quarter. Focusing specifically on South Korea, the country experienced the most significant price changes in the quarter. The overall trend in South Korea was marked by a substantial seasonal slowdown and a correlation with broader economic indicators pointing to reduced industrial activity.
The price change from the same quarter last year reflecting a sharp contraction in market demand and supply chain disruptions. Comparatively, the price change from the previous quarter in 2024 was indicating a continuation of the downward trend. The price comparison between the first and second half of the quarter showed a further decline underscoring the persistent negative sentiment. The overall pricing environment for Q2 2024 remained negative, driven by persistent oversupply, lagging demand, and external economic pressures. This unfavourable trend underscores the urgent need for market participants to adopt strategic adjustments to navigate the ongoing challenges in the Galvanized Plain Sheet sector.
Europe
In Q2 2024, the European market for Galvanized Plain Sheet exhibited a predominantly stable pricing environment. This steadiness was attributed to a confluence of factors. Principally, subdued demand from key sectors such as automotive and construction played a pivotal role. Economic deceleration, persistent inflationary pressures, and geopolitical tensions notably influenced market sentiments, curbing any significant price volatility.
Moreover, escalating energy costs in Europe further increased production expenses, compelling manufacturers to maintain price levels to safeguard profit margins. In Germany, where the most pronounced price fluctuations occurred, the overall trend mirrored broader European stability. Seasonality influenced demand patterns, with industrial activities remaining consistent. Correlating with this, the price change from the same quarter last year marked a -16% decrease, while the previous quarter in 2024 saw a -4% decline.
Despite these fluctuations, the quarter-ending price settled at USD 875/MT for Hot Dipped Galvanised Coil (1 mm) FD-Ruhr in Germany. In summary, while external economic pressures and sector-specific demands influenced the pricing landscape, the market's stability reflects an equilibrium between supply constraints and demand dynamics. The pricing environment has thus remained stable, neither overly positive nor negative, but indicative of resilience amidst broader economic challenges.
South America
In Q2 2024, Galvanized Plain Sheet pricing in the South America region remained stable, reflecting a consistent market sentiment. Various factors influenced market prices during this quarter. The stability in prices can be attributed to balanced supply and demand dynamics, with no significant disruptions reported in the market. Additionally, the overall moderate demand for Galvanized Plain Sheet contributed to the stable pricing environment.
Brazil, experiencing the most significant price changes in the region, maintained a steady pricing trend throughout the quarter. The pricing trends in Brazil echoed the overall stability observed in the South America region. Despite a slight decline from the same quarter last year, and decrease from the previous quarter in 2024, the price comparison between the first and second half of the quarter showed no significant variation, further reinforcing the stable pricing environment. The quarter-ending price for Hot Dipped Galvanized Sheet (1 mm) CFR Santos in Brazil stood at USD 872/MT, indicating a continued stable pricing scenario in the region.
For the Quarter Ending March 2024
North America
The North America region witnessed an overall positive trend in the pricing of Galvanized Plain Sheets during Q1 2024. Several factors influenced market prices, leading to an increase in prices compared to the same quarter last year. These factors included disruptions in trade routes, such as the Red Sea and Suez Canal, which raised concerns among global suppliers. Additionally, the Biden administration's decision to extend EU tariffs to support the domestic steel market contributed to the price increase.
Within the North American region, the United States experienced the maximum price changes. The overall trend in the US market was positive, with prices showing a significant increase compared to the previous quarter in 2024. The first half of the quarter saw a slight decrease in prices, followed by a sharp increase in the second half.
Overall, the pricing environment for Galvanized Plain Sheets in the North America region, particularly in the USA, has been positive during Q1 2024. Market conditions, disruptions in trade, and government policies have contributed to the increase in prices.
Asia-Pacific
The APAC region experienced a decline in prices for Galvanized Plain Sheets in the first quarter of 2024. Several factors influenced market prices during this period. One significant factor was the decrease in demand from downstream industries, particularly in the construction sector. Harsh winter conditions and the holiday season led to reduced manufacturing activity, resulting in sluggish demand for Galvanized Plain Sheets. China witnessed the maximum price changes in the APAC region during this quarter. Overall, prices showed a consistent decreasing trend. The percentage change from the previous quarter in 2024 was recorded at -0.5%, reflecting a further decrease in prices. Moreover, there was a decline in prices between the first and second half of the quarter. Chinese market has been witnessing demand lacklustre for the past few months, which remained persistent during 3rd week of March for several commodities. As per the recent assessment, Chinese metal market has shown a significant decline in terms of prices due to piled up inventories. It was observed that manufacturing activities has improved post festivities in the country, but the consumption remained low. However, few commodities didn’t feel the same, despite the demand has not improved, varying inventory level affected the price trend of multiple commodities especially metals. Nevertheless, the price fluctuations are still moderate, and prices are fluctuating in a narrow range all because of the traders’ efforts. Overall, the pricing environment for Galvanized Plain Sheets in the APAC region during the first quarter of 2024 can be characterized as negative, with prices experiencing a consistent decline.
Europe
The Galvanized Plain Sheet market in the Europe region experienced an overall positive pricing environment in Q1 2024. This upward trend can be attributed to several factors, including a surge in demand from the construction and infrastructure sectors, as well as government-supported green energy initiatives. Additionally, the market benefited from improved economic conditions and increased manufacturing activity. In Germany, which saw the maximum price changes, the Galvanized Plain Sheet market also experienced an overall positive trend. Prices in the first quarter of 2024 increased by 5% compared to the previous quarter. However, there was a slight decline in prices between the first and second half of the quarter, indicating some volatility in the market. In the last week of February, Galvanized Plain Sheets prices in the German market declined despite EU efforts to promote eco-friendly steel production. Steel manufacturers seek government intervention to address rising renewable energy costs. The German metal market continued to contract in mid-March due to subdued demand, with concerns over imports adding to domestic market challenges. Overall, the Galvanized Plain Sheet market in the Europe region, particularly in Germany, has seen a positive pricing environment in Q1 2024. The market has benefited from strong demand, improved economic conditions, and government support for green initiatives.
For the Quarter Ending December 2023
North America
Galvanized Plain Sheet prices in North America showed significant growth in the last quarter of 2023 (Q4), with moderate to high supply and low to moderate demand. Initially, in October, the price of Galvanized Plain Sheet remained stable in the US spot market, unaffected by international government policies and rising interest rates. The Chinese government's economic measures increased demand for the sheet in construction projects abroad, balancing the market. However, rising interest rates in the US and Europe limited international trade, causing buyers to delay orders.
In the later part, domestic prices rose due to decreased inventory levels, Cleaveland Cliffs' price hike announcement, and reduced production amid the UAW strike. Optimism in downstream construction supported the upward trend. By November, global stimulus measures and Chinese policies continued to boost prices, while macroeconomic factors in the USA, such as rising interest rates, contributed to the surge.
December saw stabilized prices due to reduced supply, increased order fulfillment, and expectations of further price hikes. The disruption of trade through the Red Sea and EU tariff extensions further impacted prices in late December, despite a downturn in demand during the holiday season and adverse weather conditions. The latest price of Hot Dipped Galvanized Coil (1 mm) DEL Illinois in the USA in Q4 2023 was USD 1220/MT.
Asia-Pacific
The Galvanized Plain Sheet pricing in the APAC region remained stable during the last quarter of 2023 (Q4) due to several reasons. In response to rising raw material costs, Taiwanese steel mills, including Chung Hung Steel Corporation (CHS) and China Steel Corporation (CSC), implemented slight price increases for Galvanized Plain sheets in October. Despite a sluggish international automotive industry and limited overseas demand, significant orders persisted, reflecting optimism. The price adjustments were aimed to counteract escalating production costs and were expected to continue into the early stages of the last quarter. In November, Galvanized Plain Sheet prices in the Taiwanese spot market rose due to constrained supply, heightened demand from the automotive and construction sectors, and shortages of essential materials like Iron Ore. Disruptions in the Panama Canal route and a preference for the Suez Canal route led to extended lead times and increased freight charges. In December, the trajectory of Galvanized Plain sheet prices in the spot market was influenced by decreased demand during the winter and holiday seasons, disruptions in trade routes (Panama Canal and the Red Sea), and adverse weather conditions affecting the downstream construction sector. The demand for feedstock from overseas declined amidst uncertain market conditions, contributing to a slowdown in manufacturing activity across Taiwan. The latest/quarter-ending price of Hot Dipped Galvanized Coil (SGCC Z80- 0.95 mm) FOB Taichung in Taiwan for the last quarter is USD 1366/MT.
Europe
Galvanized Plain Sheet prices in Europe declined in Q4 2023, with moderate to high supply and low downstream demand. In October, the price of Galvanized Plain Sheet remained stable in the German spot market despite global economic challenges. While China's economic measures increased demand abroad, rising interest rates in the US and Europe limited international trade. The German market saw a slight price decrease in the third week, influenced by economic uncertainty affecting the automotive sector. In November, despite decreased consumer activity due to holidays, the price held steady in Germany. However, competition from overseas markets and the European Federal Bank's intention to raise interest rates dampened purchasing activity. December witnessed stability due to subdued demand, a maintenance shutdown by Acciaierie d’Italia, and optimism for the next quarter. In the last week of December, a slight upward trend was noted, but interest waned due to trade slowdown, winter weather, and increased shipping risks globally. The uncertain market prompted cautious buyer behavior, contributing to a wait-and-watch approach amid heightened risks and winter holiday stoppages. The latest price of Hot Dipped Galvanized Coil (1 mm) FD-Ruhr in Germany in Q4 2023 was USD 894/MT.
For the Quarter Ending September 2023
North America
In the US Galvanized Plain Sheet market, prices remained on a damping trend in the third quarter due to higher mill offers during the 4th of July holiday week. Many market players took a long weekend as the holiday fell on a Tuesday, resulting in low trading activity. Short HDG lead times discouraged buyers from large spot purchases, and some service centers reduced contract buying while managing inventories during the summer slowdown. US automakers shut down some plants, contributing to a lack of demand. In August, prices continued to weaken due to lower offers and a disruption in the supply caused by an unplanned mill outage in Texas. In September, concerns about a potential strike by the United Auto Workers (UAW) against major automakers weighed on demand, and buyers reduced purchases ahead of the contract deadline. The Galvanized Plain Sheet market saw dwindling sentiment, especially in the automotive sector. Supply remained plentiful in most places. Throughout this period, stagnant demand from downstream sectors, labor strikes, and concerns about inflation contributed to the overall stability of Galvanized Plain Sheet prices. The market remained cautious, awaiting developments in labor negotiations and demand in the automotive and construction sectors.
Asia-Pacific
In the third Quarter of 2023, the Galvanized Plain Sheet market in Taiwan experienced a price decrease as demand waned in the automotive and energy transmission sectors. This led to a bearish market sentiment, compounded by an oversupply of sheets from foreign markets, notably China. Local mills responded by lowering prices to attract buyers. Yieh Phui Enterprise Co., a prominent steel coating manufacturer, announced an expansion of production capacity, augmenting supply in the Taiwanese spot market. Concurrently, Australian anti-dumping duties on Taiwanese Galvanized Plain Sheets persisted, restricting exports and causing local inventory levels to rise. Economic challenges in Taiwan made local buyers cautious, deepening the overall pessimism. Despite reduced demand in downstream sectors, production rates remained high, causing domestic inventory to swell. A more stable supply and demand situation in the middle of the third quarter led to an upturn in Galvanized Plain Sheet prices. In summary, the Galvanized Plain Sheet market in Taiwan witnessed price reductions due to weak demand, oversupply, and rising production costs, with adjustments expected to continue into the next quarter. Steady overseas demand and price increases have, however, maintained optimism in the market.
Europe
In the third quarter of 2023, Galvanized Plain Sheet prices have remained on a lower edge due to a supply-demand imbalance in the German spot market. Distributors have excess inventory, end-users are slow in purchasing, and price fluctuations add uncertainty. In Europe, Galvanized Plain Sheet trading was quiet, with prices at a low point, and the spot market stayed subdued. Long-term contracts with the automotive industry were prioritized over spot sales. Furthermore, Galvanized Plain Sheet prices barely moved in early August due to weak automotive demand and rising interest rates. Low supplies resulted from maintenance, full order books, and import reluctance due to tariffs and lead times. The European market remained slow in late July due to the summer holidays. Optimism for post-summer demand and limited import quotas existed, with stable HDG prices and potential recovery in September. Mechanical product orders dropped 14% from H1 2022. In early September, Galvanized Plain Sheet prices in Germany further decreased due to reduced automotive inquiries and structural challenges, including high energy costs and import competition. The market outlook was pessimistic, with low construction market activity, a potential automotive downturn, and high interest rates deterring investment.
For the Quarter Ending June 2023
North America
The price of Galvanized Plain Sheet overall declined in the US spot market amid the declining economic situation in the country, along with a higher inventory level in the second Quarter of June 2023. The initial phase of the second quarter showed slight hope for the Galvanized Plain Sheet market as the prices were high in April. The production cut was observed in April, as the joint company of US Nucor and Japanese Yamato Kogyu – Nucor Yamato was shut down between 9 to 16th April. The Nucor mill did the increase in the price of Galvanized Plain Sheet as the lead time decreased from 8-10 hours to 8-9 hours. In the H2 of the second quarter, the prices went downward. The rising economic uncertainties caused by the debt crisis due to the fall of major US banks made the US market sentiment pessimistic. Consequently, the demand from the downstream automobile industry declined, resulting in the shutdown of three major automotive companies like, Nissan, Kia, and Sedan, in June to reduce the supply-demand gap. The reduced consumption of Galvanized Plain Sheet sheets in the US downstream automobile and construction industry led to an increase in inventory level. The feedstock Iron ore prices also decreased as the extraction rate increased in the overseas mines in Australia and Indonesia, leading to surplus supply at a much cheaper rate in the spot market. As a result, the local manufacturers were provoked to offer discounts even on smaller orders as the market got sluggish.
Asia-pacific
The price ofGalvanized Plain Sheet showed a continuous declining trend throughout the second quarter in the Japanese spot market. At the start of the second quarter, the production rate was on a higher edge as the major galvanizing plants performed at a faster pace. Meanwhile, the downstream construction sector remained negative throughout Q2 due to uncertain global economic conditions. The Japanese automobile industry also faced a sluggish market sentiment as the rising inflation rate affected demand from the overseas US and European markets. The steel scrap prices were also declining, which put downward pressure on the local steel mills. In H2 of the second quarter, most of the major steel plants underwent production cuts for infrastructural upgradations, such as the JFE Steel corporation planned to produce green steel under the ‘JGreeX’ project for providing a push toward the decarburization effort of the Japanese government. The production cut resulted in a surplus supply in the local inventory that provoked buyers to shy away from placing large orders, and the market became bearish.
Europe
In the second quarter, the Italian Galvanized Plain Sheet market showed an overall declining trend amid a price increase in the initial period of April, and later declining price was persistent in the H2. The prices went high due to increased production costs amid rising energy costs and feedstock prices. The downstream demand from the construction industry remained stable, which helped in raising the price of Galvanized Plain Sheets in the Italian spot market. In the second half, the market situation changed as the global economic condition was deprived, leading to a rising inflation rate across Italy and other European nations. The steel production rate was high amid weak demand from the downstream construction sector resulting in high inventory levels. This provoked the buyers to offer Galvanized Plain Sheet sheets at a much-reduced price to sustain in the Competitive global market. Overseas steel suppliers such as China were offering a surplus supply of Galvanized Plain Sheet sheets in the Italian and all major European markets, which put downward pressure on the Galvanized Plain Sheet prices produced by the local Italian Mills. The Italian government-imposed tariff on Russian-origin steel as that was increasing the local inventory levels.
For the Quarter Ending March 2023
North America
During the third quarter of 2023, the Galvanized Plain Sheet prices in the US market increased, primarily due to limited inventories and the strong downstream automotive industry. After a slow start following the New Year's holiday, demand began to pick up moderately, leading to increased customer inquiries and shipments at service centers. However, buyers were hesitant to stock up on steel products, given the short lead times. The January trade was dominated by mills with larger appetites, leading to increased regional competition. As flat-rolled steelmakers increased their purchasing programs, prime-grade prices rose. The combination of tight supply, rising demand, and a surge in export markets pushed prices higher. Mills booked slightly more than they could produce, implying that deliveries might be delayed until May. Some mills reportedly postponed new bookings while more made bookings for May. Confirmed orders were safeguarded until fully shipped. When mills announced a price increase, it was immediately effective on new orders. Steel mills succeeded in raising prices by USD 400/MT through a series of increases since the end of November. As a result, Hot Dipped Galvanised Sheet (1 mm) prices for Ex Midwest settled at USD 1301/MT.
Asia Pacific
In the Chinese market, the Galvanized Plain Sheet prices showcased an upward momentum in the first quarter of 2023 due to strong downstream automotive inquiries and sufficient inventory. After the Spring Festival holiday, the steel market strengthened, and steel prices continued to rise, indicating a promising start. Coking enterprises resumed relatively smoothly, and steel mills continued to procure on demand. Steel mills halted production for maintenance due to high costs, and output continued to fall, which helped push up steel prices. However, downstream inquiries remained low, and spot market transactions weakened significantly as the wait-and-see sentiment prevailed among traders. Domestic Galvanized Plain Sheet prices in China increased in March due to increased trade activity and eased inventory pressure. Major city inventory decreased while transactions increased significantly due to a favorable macroeconomic environment and falling inventory. Poor profits and rising upstream coil prices suppressed demand from terminals initially, but later, the eased supply pressure and increased terminal demand led to a decline in HDG inventory. As a result, the Hot Dipped Galvanised Sheet (1 mm) prices for Ex Shandong settled at USD 787/MT.
Europe
In the first quarter of 2023, the Galvanized Plain Sheet prices in Germany had risen due to strong order books at local mills, extended lead times, and limited imports. The price increase was supported by a positive market revival in Asia, production cuts across Europe, high energy costs, and a lack of competitive imports. However, negative factors such as reduced end-user demand and consumer resistance to higher prices were observed. The technical issues at Tata Steel's cold-rolling mill in the Netherlands, which caused the mill to declare force majeure, had also contributed to the market's bullish mood. Distributors prioritized purchasing smaller lots of coils as end-user demand remained stable, and consumers rejected high prices. Due to long lead times and uncertainty regarding potential changes in safeguard measures and the sustainability of the upward trend through the summer, European buyers were unable to replace domestic supply with imports. As a ripple effect, the Hot Dipped Galvanised Coil (1 mm) prices for Ex Ruhr (Germany) settled at USD 1073/MT at the end of March.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a significant drop in the price of the galvanized plain sheet in the US market due to declining demand dynamics and lengthy lead times. US Steel had already shut down two blast furnaces as a consequence of imminent market conditions. Buyers continued to prioritize reducing inventories for all products through the end of the year, which prevented them from participating in the spot market made possible by domestic mills' shorter lead times as opposed to imports' longer lead times. Market participants said that lead times had increased from 6 weeks to 6-7 weeks and that the regional market's inventory level was sufficient to satisfy domestic demand. Several significant manufacturers have increased their quotation range in response to price hikes in the marketplace. In addition, market participants saw that steel mills were sticking to their offers despite a slowdown in purchasing activity before the year's conclusion. However, the market was keeping a watch on raw material pricing. As a ripple effect, Hot Dipped Galvanised Sheet (1 mm) prices fur Ex Midwest (USA) set at USD 994/MT.
Asia Pacific
Galvanized plain sheet pricing in China showed an up-swinging pattern in the fourth quarter of 2022 despite changing downstream inquiries. Market participants claim that the first half of Q4 saw a decline in steel prices as a result of constant supply and demand imbalances and inconsistencies. Due to contamination in Sichuan's waters, the Provincial Environmental Protection Department ordered some zinc smelters to halt production, resulting in a limited output of related refineries. Additionally, several smelters experienced output delays, and as a result of the growing number of COVID-19-infected workers, transportation efficiency also suffered. At the close of the fourth quarter, some enterprises were compelled to reduce or halt production for maintenance due to a labor shortage and a decline in terminal orders. The price of Hot Dipped Galvanized Sheet (1 mm) for Ex Shandong (China) was assessed at USD 736/MT as a knock-on effect.
Europe
Galvanized Plain Sheet prices in Europe showed a downward trend in the fourth quarter of 2022 because of cautious consumer behavior and rising inventory levels. According to market participants, the market was rather quiet in October, and large manufacturers negotiated more export sales contracts for markets in neighboring Europe, like France. Several market participants reported in Mid-Q4 that distributors of Hot-Dipped Galvanized Plain Sheets were active because they needed to secure certain volumes for January. In December, a lack of purchasing interest in Galvanized Plain Sheets was caused by insufficient demand from the downstream automobile industry, combined with still-high stock levels at steel service centers and stockholders. In general, some customers feel the need to refill, but they prefer to hold off until the price has reached its lowest level before doing so for the first quarter of 2023. As a result, the price for Hot Dipped Galvanized Sheet (1 mm) for Ex Ruhr (Germany) was agreed upon at USD 796/MT.
For the Quarter Ending September 2022
North America
In the North American market, the Galvanized Plain Sheet prices witnessed a declining trend owing to the limited demand from the downstream players amidst higher inventory levels. In August, US steel prices continued to fall, with hot-dipped galvanized prices reaching their lowest level since January 2021. Steelmakers' margins are being eroded by persistently high costs and falling prices. Many market participants believe the move was made to halt the continuous price decline for Hot-Dipped Galvanised Plates. Current high prices do not correspond to historically long mill lead times, which have traditionally been a leading indicator of availability and demand. In addition to declining price trends and a deteriorating demand outlook, North American flat-rolled steel producers are now under pressure from rising input costs. SDI's Sinton, Texas, mill has recently been operating at 75-80% capacity, but it experienced multiple production curtailments and power supply issues in July, resulting in lower output. Thus, the Hot Dipped Galvanised Sheet (1 mm) prices for FOB Chicago (USA) settled at USD 1337/MT.
Asia Pacific
In the third quarter of 2022, the Galvanized Plain Sheet prices fell sharply as Tangshan billet fell sharply, resulting in a sharp decline in coke and iron ore futures. The mood of merchants in the spot market was gloomy, and the price fell as a result. Private steel mill losses increased, putting even more strain on merchants' funds at the end of the month. Steel mills began to suppress raw material prices and limit production to balance supply and demand, but it still took time to reshape the balance through production reduction. Overall, the society's Treasury inventory remains high, off-season characteristics are visible, demand and consumption are inactive, and the pressure of resource digestion is significant. Rising zinc and soaring energy costs will squeeze margins for hot-dip galvanized (HDG) coil manufacturers without a substantial rise in inquiries and price recovery in mid-August and September. Thus, the discussions of Hot Dipped Galvanised Sheet (1 mm) and Pre Painted Galvanised Sheet (1 mm) prices for Ex Shandong (China), and Ex TIANJIN (China) settled at USD 731/MT and USD 874/MT.
Europe
The Galvanized Plain Sheet prices witnessed a sliding price trend in the European market in the third quarter of 2022 amidst the lower demand outlook and higher production costs. According to market participants, manufacturers are struggling with additional orders and will reduce discounts for special deals. Furthermore, the automotive sector sent mixed signals, with order intake reported as low but increasing. Given the lengthy automotive backlog, market players were cautiously optimistic that orders would be maintained in the future. Additionally, manufacturers have confirmed that coil products have been at or near a bottom since July. In recent months, European flat product suppliers have reduced output to align supply with available demand. Prices should be reduced beginning in September. The European Commission is imposing definitive anti-dumping duties on imports of HDG steel coils and sheets from Russia and Turkey after discovering evidence that Turkish and Russian material was sold at dumping margins ranging from 2.4% to 39.8%. Therefore, the discussions of Hot Dipped Galvanised Sheet (1 mm) prices for FOB Hamburg (Germany) settled at USD 994/MT.
For the Quarter Ending June 2022
North America
The US market for Hot-Dipped Galvanised Plate fell in the second quarter of 2022 compared to the first quarter, owing to weak demand and falling scrap prices. According to market participants, buyers face higher transportation costs and logistical bottlenecks. Most market participants predict price stability to lower scrap costs, but the Russian invasion of Ukraine and changes in the supply chain added further volatility to pig iron imports this year; demand remains strong in the short term. Service centers have been more active in the spot market, but mills have remained firm on offers. Mills have announced price increases for rebar to compete with imports and freight increases. Mills have announced rebar price increases to compete with imports, as well as increases in freight rates, as even imports face port congestion and higher trucking costs from the ports. Buyers claim that imports will arrive in September, causing prices to fall in the coming quarters.
Europe
In the European market, the Hot Dipped Galvanised plate witnessed a declining trend in the second quarter of 2022, primarily due to the plunging demand from the automobile and construction sectors amidst reduced import offers. With anticipated restocking and some EU manufacturers planning to stop galvanizing lines for maintenance, domestic supply will be reduced. As per market players, the mills have July-August delivery, but deals are mainly done for smaller tonnages for September delivery, as buyers have started to plan their stocks for autumn. Additionally, exporters are planning price rises for Europe after India introduced export duties on finished steel. Demand in the southern market was similarly muted, with no transactional activity. However, mills don't seem to be cutting production, and there is no chance to keep prices from falling with current demand and production rates. As a ripple effect, the Hot Dipped Galvanised plate showcased muted demand, primarily due to steelmakers' engagement in negotiations for long-term automotive contracts.
Asia Pacific
The Hot Dipped Galvanised Sheet market in Asia witnessed fluctuating market dynamics due to resumed production activity and decreased demand due to Covid-19 outbreaks in China. In addition, with increased supply expected after the country's steelmaking hub of Tangshan lifted its lockdown, Hot Dipped Galvanised Sheet prices fell further in April. Meanwhile, export demand remained weak, as rapid and sharp price drops kept buyers off the market. However, the Chinese market experienced an upward trend in May due to rising inflationary pressures and the resumption of industrial activities. Due to volatile coke costs and a continuous decline, mill losses are becoming more visible, and production cuts are increasing, alleviating inventory pressure in the short term. While the domestic Galvanized Steel Sheet market remained stable in June, gradually shifting to the traditional off-season period. Even though work and production have resumed in various locations, weather issues have impacted on-the-spot consumption. As a result, the prices for Hot-Dipped Galvanised Sheet and Pre-Painted Galvanised Sheet for Ex Shandong and Ex Tianjin settled at USD 890/MT and USD 970/MT, respectively.
For the Quarter Ending March 2022
North America
In the USA, the Galvanised Plain Sheet prices witnessed soaring market sentiments in the first quarter of 2022 amidst the outburst of war in Ukraine, and European sheet manufacturers experienced swirling raw material costs and disrupted supply chains. A few remained active but endeavored to confine order intake by offering very high prices for Galvanised Plain Sheet. According to market players, distributors increased their resale deals throughout March to hold stocks and supply regular buyers. During the first two weeks of March, the rapid price escalations boosted more panic buying among participants. Most distributors harboured sufficient stocks and were reluctant to replenish at rising values amid reduced inventory availability and robust demand from end-users. Market participants face two choices: reorder quotations at skyrocketing prices or allow gaps to appear in warehouses.
Asia
In India, the Galvanised Plain Sheet witnessed an upward trend due to rising raw material and coking coal prices. The prolonged hostility between Russia and Ukraine has stretched the supply chains, rocketing raw material prices. However, Indian steel manufacturers have raised quotations of CR Coil by more than USD 30-40 per tonne because of soaring coking coal prices. Additionally, Zinc metal prices also upsurged in the domestic market of India. Despite this, the Hot Dipped Galvanised Sheet declined in China due to the resumed production activity and decreased demand amidst the Covid-19 outbreaks. Also, with the expectations of increased supply after the country's steelmaking hub of Tangshan lifted its lockdown, the Hot Dipped Galvanised Sheet prices further plunged. Additionally, the Chinese mills slashed their export quotations for Hot-Dipped Galvanized Steel Sheets due to poor demand. As a ripple effect, the prices of Hot dipped Galvanised Sheet (1mm) for Ex-Mumbai, and Ex Shandong was assessed at INR 85350/MT and USD 885/MT during March-end.
Europe
During the first quarter of 2022, the Galvanised Plain Sheet prices witnessed soaring market sentiments in Russia due to the firm demand from downstream sectors and weak supply amidst the ongoing militancy between Russia and Ukraine. This extending conflict has provoked the prices of the raw materials, primarily coking coal and iron ore prices, to soar. Additionally, the coking coal prices tripled during mid-March owing to supply constraints and inflation over prices of crude and power. Meanwhile, domestic Steel manufacturers were adjusting to soaring energy prices and availability issues amid transport sit-downs pushed by the high fuel costs. According to Russian Market players, the power crisis amidst rising inflation over crude and power prices forced them to lean toward overseas supplies. Russia is among the leading steel exporters, and its war indulgence has uprooted the supply chain. However, Western countries' sanctions imposed on Russia have two-folded the impact on the Russian market. As a ripple effect, the Galvanised Plain Sheet prices showcased an uptick trend.
