For the Quarter Ending December 2024
North America
The North American stainless steel flat market endured notable pricing challenges in the fourth quarter of 2024 declining quarter on quarter, with the USA exhibiting the most significant fluctuations. Prices steadily declined throughout the quarter, ending at USD 3,690/MT for SS 304 HR Plate (6 x 1250 x 2000) DEL Texas, reflecting a negative pricing trend of 1.6% quarter on quarter environment shaped by multiple compounding factors.
Weak market fundamentals and sluggish trading activity largely influenced the downward trajectory. Additionally, demand from core industries like construction and automotive remained subdued, adding to the pressure on pricing. An oversupply situation, coupled with limited disruptions, ensured a consistent availability of materials, but this failed to align with declining demand levels, further weighing on prices.
The USA market faced additional strain from rising imports and geopolitical uncertainties that disrupted overseas demand. Nevertheless, seasonality also played a role, with prices showing a steady downward momentum between the first and second half of the quarter. Despite these adversities, the North American stainless-steel market showed elements of resilience amidst challenging conditions, bolstered by strong industry fundamentals and the region’s inherent capacity to adapt.
Europe
The fourth quarter of 2024 proved challenging for the European stainless steel flat market, with prices showing a 13% decline from Q3. Closing the quarter at USD 2,967/MT for SS 304 HR Plate (8 x 1350 x 2000) Ex Ruhr in Germany, the market experienced pronounced bearish sentiment amid a combination of global and regional adversities. Additionally, global supply chain disruptions, coupled with localized challenges such as subdued demand from crucial industries like construction and automotive, were key drivers of the downward trend. Regulatory changes implemented by the European Union further complicated matters, introducing additional pressures that intensified market instability. Moreover, Germany endured the steepest price drops within the region, reflecting the broader economic challenges that impacted stainless steel demand. Additionally, seasonality played a notable role in market trends, with prices consistently declining throughout the quarter as weaker market conditions aligned with reduced industrial activities in the latter half of the year. Despite industry efforts to stabilize the market, the prevailing environment remained uncertain and marked by shrinking demand and excess supply concerns.
APAC
The fourth quarter of 2024 marked a challenging period for the APAC stainless steel flat products market, concluding at USD 1,571/MT for SS 304 HR Plate (6 x 1250 x 2000) Ex Shanghai, representing a 5% decline from Q3 2024. This downward trajectory reflects a complex interplay of market fundamentals, economic conditions, and regional dynamics. The Chinese market, being the primary price influencer in the APAC region, experienced pressure from multiple directions. Supply chain disruptions coincided with significant demand weakness in key end-use sectors, notably construction and automotive. This combination created a perfect storm for price depression, with oversupply conditions exacerbating the downward pressure on market prices. Additionally, market sentiment remained predominantly bearish throughout the quarter, influenced by broader economic uncertainties and natural calamities that disrupted normal trading patterns. The expansion of production capacities in certain regions, coupled with subdued demand, further contributed to the oversupply situation, preventing any meaningful price recovery. Looking forward, while the current price levels reflect significant market corrections, the underlying fundamentals suggest that recovery might be gradual, dependent on improvements in demand-supply dynamics and overall economic conditions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North America region witnessed a notable increase in Stainless Steel (Flat) prices, with the USA market experiencing the most significant fluctuations. Several key factors influenced this pricing surge. Firstly, strong market fundamentals and robust trading activities contributed to the upward trend. Additionally, heightened demand from various sectors, such as construction and automotive, played a pivotal role in driving higher prices. The stable supply chain and limited disruptions further supported the price surge, ensuring a consistent flow of materials to meet the escalating demand.
In the USA specifically, the pricing environment exhibited a positive trajectory throughout the quarter. Seasonality and correlation in price changes indicated a steady upward momentum, with a 5% price increase observed between the first and second half of the quarter. Despite facing challenges such as increased imports and geopolitical issues affecting overseas demand, the USA Stainless Steel (Flat) market remained resilient.
The quarter culminated in a price of USD 3922/MT for SS 304 HR Plate (6 x 1250 x 2000) DEL Texas, underscoring the overall positive pricing trend in the region.
APAC
The third quarter of 2024 for Stainless Steel (Flat) in the APAC region has been characterized by a significant decrease in prices, influenced by various factors. The market experienced a challenging environment with oversupply issues, weak demand, and economic uncertainties playing a pivotal role in driving prices downward. Factors such as disruptions from natural calamities, production expansions, and subdued market sentiment have collectively contributed to the negative pricing trend.
In China, which witnessed the most substantial price changes, the market faced challenges such as supply chain disruptions, reduced demand from key sectors like construction and automotive, and a general economic slowdown. The overall trend in Stainless Steel (Flat) pricing in the region has been negative, with a noticeable correlation between market conditions and price movements. The quarter recorded a decrease of 3.6% from the previous quarter, with a 2.5% decline noted between the first and second half of the quarters.
The quarter-ending price stood at USD 1653/MT of SS 304 HR Plate (6 x 1250 x 2000) Ex Shanghai, reflecting the prevailing decreasing sentiment in the market.
Europe
In Q3 2024, the Stainless Steel (Flat) market in Europe experienced a period of declining prices, influenced by a combination of factors. Global supply chain disruptions, subdued demand in key industries like construction and automotive, and regulatory changes from the European Union all played a significant role in driving prices downwards.
These challenges were particularly pronounced in Germany, where the market saw the most significant price changes. The overall trend in the region indicated a negative sentiment, with prices experiencing a consistent decrease throughout the quarter. Seasonality and correlation in price changes were evident, comparing the first and second half of the quarter, prices showed a decline of 1%. Despite the efforts to navigate these challenges, the quarter ended with Stainless Steel (Flat) prices at USD 3613/MT for SS 304 HR Plate (8 x 1350 x 2000) Ex Ruhr in Germany.
The quarter was characterized by a bearish market sentiment, with a pricing environment reflecting a challenging and uncertain landscape.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Stainless Steel (Flat) market has experienced a context of stable prices. The stability can be attributed to a confluence of factors, including balanced supply-demand dynamics and steady manufacturing activities. The quarter's performance has been shaped by moderate raw steel production levels and sustained demand in key sectors such as automotive and construction. Notably, the market did not witness any significant plant shutdowns or disruptions, contributing to the absence of supply shocks that could have triggered price volatility.
Focusing on the USA, which has seen the most pronounced price movements within this region, the stainless steel market exhibited a stable pricing environment throughout the quarter. Seasonal trends maintained equilibrium, with demand from the automotive and construction sectors providing a consistent underpinning for prices. The correlation in price changes mirrored broader economic indicators without drastic fluctuations, aligning with the overall sentiment of stability.
Compared to the same quarter last year, prices demonstrated resilience against potential downward pressures, showing a 9% increase from the previous quarter of 2024, indicating a period of consolidation rather than sharp movement. The quarter concluded with the price of SS 304 HR Plate (6 x 1250 x 2000) delivered in Texas at USD 3794/MT. This price point reflects a stable sentiment, suggesting a largely positive pricing environment marked by consistency and predictability in the stainless steel (flat) market.
Europe
In Q2 2024, the European Stainless Steel (Flat) market experienced a significant upward trajectory, driven by a confluence of factors. The introduction of the EU Critical Raw Materials Act (CRMA) underscored the need for diversified and secure supply chains, pushing up alloy surcharges as nickel and molybdenum prices surged. Energy cost volatility, coupled with inflationary pressures, created an environment of rising production costs, further exacerbating price increases. Regulatory shifts and geopolitical tensions, notably Houthi terrorist attacks near the Suez Canal, contributed to higher shipping costs, adding to the upward pricing momentum. Germany witnessed the most pronounced price changes, reflecting broader European trends but magnified by specific local factors. The price of SS 304 HR Plate in Germany rose dramatically, influenced by Thyssenkrupp's reduction in production capacity at its Duisburg site. Seasonality played a role, with spring generally being a period of higher demand for stainless steel in industrial applications, but this was intensified by a robust recovery in the automotive sector. The overall trend showed an 11% increase from the previous quarter.
This increasing price sentiment was further supported by the ECB’s interest rate cuts aimed at stimulating economic activity, which indirectly bolstered demand for stainless steel. Despite some challenges, including disruptions in supply chains and heightened import pressure, the pricing environment remained overwhelmingly positive. The latest quarter-ending price for SS 304 HR Plate in Germany stood at USD 3614/MT, reflecting the sustained bullish market sentiment throughout the quarter.
APAC
The APAC region experienced a challenging Q2 2024 for Stainless Steel (Flat), with a consistent decrease in prices reflecting an overall negative sentiment. Significant factors influencing this downturn include weak downstream demand, elevated production costs, and high inventory levels. Seasonal slowdowns exacerbated the price decline, while global economic uncertainties further dampened market sentiment. Increased raw material costs, notably nickel, also pressured profit margins, compelling mills to maintain production despite adverse conditions.
China, witnessing the most substantial price changes, saw a marked downtrend in Stainless Steel (Flat) prices. The overall trends highlighted a sharp decline in demand from the property and automotive sectors, coupled with reduced infrastructure investment. Seasonality played a crucial role, with weak post-Labour Day demand contributing to the bearish market. The correlation between high production rates and stagnant demand led to increased inventory levels, further driving prices down.
From the previous quarter in 2024, prices recorded a 3% decrease, reflecting the persistent bearish market conditions. The latest quarter-ending price stood at USD 1712/MT for SS 304 HR Plate (6 x 1250 x 2000) Ex Shanghai. The overall pricing environment has been negative, driven by subdued demand, high costs, and economic uncertainties, with no significant disruptions or plant shutdowns reported during the quarter.
For the Quarter Ending March 2024
North America
In Q1 2024, the Stainless Steel (Flat) market in North America experienced a relatively stable pricing environment. The market was influenced by several factors, including decreased demand from downstream industries and a decline in nickel prices. This led to stable prices for Stainless Steel (Flat) products.
The US market saw a slight decrease in prices, driven by reduced demand from industries such as construction and automotive. The decline in manufacturing activity in these sectors, as well as cautious outlook among buyers, contributed to the reduced demand for Stainless Steel (Flat) products. Globally, the Nickel mining industry experienced growth, with major mining companies expanding their capacity. This increase in feedstock supply helped stabilize prices in the market. However, disruptions in trade routes, such as the Suez Canal blockage, resulted in extended lead times and higher freight costs, impacting inventory levels in the US spot market.
Looking at the quarterly price changes, there was a slight decline in prices from the previous quarter in 2024. However, the overall trend for Stainless Steel (Flat) prices in the US market remained relatively stable throughout the quarter. In conclusion, the pricing environment for Stainless Steel (Flat) in North America, specifically the US market, has been stable in Q1 2024. While there were some challenges in terms of decreased demand and disruptions in trade, the market showed resilience and maintained a consistent pricing trend. The latest quarter-ending price for SS 304 HR Plate (6 x 1250 x 2000) DEL Texas in the USA was USD 3506/MT.
APAC
In Q1 2024, the Stainless Steel (Flat) market in the APAC region experienced a mixed pricing environment. The overall trend was decline. Several factors influenced market prices during this quarter. In the APAC region, the pricing of Stainless Steel (Flat) was influenced by factors such as reduced demand from downstream industries, increased inventory levels, and slower global trade expansion. The decreased demand was primarily driven by lower consumption in the automotive sector, particularly in the new electric vehicle segment. Chinese manufacturing also contracted, leading to calls for stimulus measures. Additionally, disruptions in global trade routes and geopolitical instability affected trade dynamics, further impacting pricing. China observed notable fluctuations in the prices of Flat Stainless Steel. Prices declined in January owing to diminished demand and a surplus of supply. February and March saw prices mirror this trend due to continued low demand from downstream automotive sectors. An uptick in supply in the Chinese spot market resulted in a minor price reduction. Overall, Q1 2024 showed a stable pricing environment for Stainless Steel (Flat) in the APAC region. While there were some fluctuations in China, the market remained relatively steady. The latest quarter-ending price for SS 304 HR Plate (6 x 1250 x 2000) Ex Shanghai in China was USD 1700/MT.
Europe
In Q1 2024, the Stainless Steel (Flat) market in Europe experienced mixed trends, with Germany witnessing the most significant price changes. Overall, the market sentiment slightly increases. Various factors influenced market prices during this quarter. One key factor was the supply disruptions that tightened inventory levels, leading to a slight price uptick. Prolonged industrial disputes and operational issues at major manufacturing plants, such as Acerinox's Los Barrios and Outokumpu's Tornio sites, resulted in reduced production rates and supply constraints. This, coupled with growing demand fuelled by infrastructure and construction projects, intensified competition for available stock and drove prices upward. In Germany specifically, prices saw a slight increase compared to the previous quarter. The supply shortage and extended lead times further complicated the supply chain and added to the uncertainty for stakeholders. On the demand side, there was a moderate growth in the market, driven by ongoing infrastructure projects. However, this heightened demand exacerbated the supply-demand disparities, leading to increased price pressures. Looking at the quarter, there was a stable market sentiment, with supply and demand both at moderate levels. However, the price changes in Germany highlighted the challenges faced by the industry, such as labour disputes and operational issues, which impacted production and supply. In conclusion, the Q1 2024 Stainless Steel (Flat) pricing environment in Europe was characterized by stable market sentiment, with Germany experiencing the most significant price changes. Supply disruptions and growing demand contributed to price upticks, while challenges in the industry created uncertainties for stakeholders.
