For the Quarter Ending September 2024
North America
In Q3 2024, the North American Steel Wire Rod market witnessed a downward trend in prices, reflecting a challenging environment characterized by a multitude of factors. The significant influence on market prices stemmed from a combination of weakened demand and increased supply dynamics. The market was predominantly impacted by a surplus of steel imports, leading to an oversupply situation alongside existing high domestic inventory. This influx of imported steel, coupled with lacklustre demand catalysts and weak market sentiment, contributed to the persistent downward pressure on prices throughout the quarter.
Within the USA, the market experienced the most pronounced price changes, with a consistent decline observed. The quarter saw a substantial price decrease compared to the same period last year, further accentuated a decrease from the previous quarter in 2024. The price comparison between the first and second half of the quarter revealed a notable 3% decrease.
Ultimately, the quarter-ending price for Wire Rod (A36-8 mm) Ex Texas in the USA settled at USD 1139/MT, reflecting the prevailing negative sentiment and challenging pricing environment.
APAC
Throughout Q3 2024, the Steel Wire Rod market in the APAC region has experienced a period of decreasing prices, influenced by a combination of factors. The market has been notably impacted by persistent oversupply, sluggish demand, and rising input costs. Furthermore, these challenges have created a downward pressure on prices, leading to a negative trend in the pricing environment.
In China, which has seen the most significant price changes, the comparison between the first and second half of the quarter revealed a slight decline of 2%. Additionally, Export volumes decreased, and the broader manufacturing sector faced reduced demand. Moreover, the overall market faced a decline in demand due to the traditional off-season, with a decrease in steel demand.
The latest price recorded at USD 1313/MT for Stainless Steel-201 CR Coil (1 mm) Ex Shanghai in China signifies the prevailing decreasing sentiment in the market, highlighting the challenges faced by industry players in navigating pricing dynamics amidst a complex operating environment.
Europe
In Q3 2024, the Europe region witnessed a decline in Steel Wire Rod prices, driven by a combination of factors. Global disruptions, such as conflicts in Ukraine and the Middle East, contributed to supply challenges, while weakening demand in the construction sector, exacerbated by regulatory uncertainties and high interest rates, further dampened market conditions. Furthermore, the market also faced pressure from oversupply, with production cuts by steelmakers failing to offset the downward price trend.
Germany, in particular, experienced significant price fluctuations, reflecting the broader European trend. Additionally, the quarter observed a decrease from the same period last year, indicating a challenging market environment. Within Q3 2024, prices remained stable initially but decreased by 1.5% in the second half of the quarter, highlighting the downward trajectory. Moreover, the market sentiment remains bearish, with expectations of continued low demand.
The quarter ended with Steel Wire Rod prices at USD 670/MT FD-Ruhr, Germany, underscoring the prevailing negative sentiment and indicating a generally bearish pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American steel wire rod market experienced a downward price trajectory, shaped significantly by an oversupply situation and reduced demand across various sectors. Factors exacerbating this decline included high inventory levels, low purchasing activity, and economic uncertainty, fostering a bearish market sentiment. Elevated capacity utilization rates, not proportionate to the sluggish global demand, further strained the supply-demand equilibrium. Additionally, freight cost increases and subdued construction activities contributed to the price downturn, reflecting the broader economic challenges within the region.
Focusing on the USA, the most pronounced price volatility was observed, driven by a combination of domestic and international market pressures. The construction sector's underperformance, coupled with high financing costs, led to reduced residential building activities, dampening the demand for steel wire rods. Seasonality also played a role, with the first half of the quarter witnessing a sharper decline of -4% compared to the latter half, indicating persistent market weaknesses.
The quarter-ending price of USD 1225/MT for Wire Rod (A36-8 mm) CFR Texas underscores the prevailing negative market sentiment. The consistent decrease in prices throughout the quarter reflects a challenging economic landscape, marked by hesitant consumer behaviour and a cautious approach to new purchases. Overall, the pricing environment in Q2 2024 for steel wire rods in North America, particularly in the USA, has been decidedly negative, driven by a multitude of converging factors that continue to pressure market stability and profitability.
Europe
In Q2 2024, the European Steel Wire Rod market experienced notable price fluctuations, influenced by various pivotal factors that have shaped the regional trading dynamics. The quarter has seen a robust influence from heightened energy costs, constrained raw material availability, and geopolitical tensions affecting shipping and logistics. These elements have collectively exerted upward pressure on Steel Wire Rod prices, despite the broader global stability in scrap prices. Additionally, significant investments in sustainable steel production technologies have also contributed to the cautious optimism within the market, further affecting pricing structures.
Focusing exclusively on Germany, which has witnessed the most substantial price changes, the overall trend in this quarter was characterized by moderate demand dynamics and cautious trading activity. The seasonality typically observed in the steel market was evident, with the first half of the quarter reflecting a marginal increase in prices. This was primarily due to restocking activities post-Easter and the anticipation of stable demand from the construction and automotive sectors. However, the increase in economic activity in these sectors tempered the expected price surge, resulting in a modest 1% price differential between the first and second halves of the quarter.
Concluding the quarter, the price of Wire Rod (5.5 mm) settled at USD 685/MT CFR Bremen, underscoring an increase in pricing environment driven by moderate supply-demand equilibrium and cautious market sentiment. Overall, the pricing environment in Germany has been slightly positive, guided by strategic market adjustments and underlying economic activities.
APAC
In the second quarter of 2024, the pricing environment for Steel Wire Rod in the APAC region has remained predominantly stable. Key factors influencing the market prices include supply-demand equilibrium, global economic conditions, and industrial activities. The stable prices have been primarily supported by a balanced production rate and moderate demand from the infrastructure and automotive sectors. Despite some fluctuations in raw material costs, such as coal and iron ore, manufacturers have effectively managed operational efficiencies to maintain steady price levels.
Focusing on China, which has witnessed the most significant price changes within the region, the overall trend has been marked by a delicate balance between supply and demand. Seasonal factors, such as the intermission of construction activities during monsoon periods, have played a role in stabilizing demand. The correlation between reduced construction activities and lower market volatility has ensured that price fluctuations are minimal. Moreover, this consistency is further evidenced by no change from the previous quarter, underscoring the market’s resilience and stable sentiment.
The price comparison between the first and second halves of the quarter remains unchanged, indicating a uniform pricing landscape throughout the period. This stability suggests a stable pricing environment, where neither significant surges nor drops have disrupted market equilibrium. The quarter-ending price for Wire Rod (Q235-8 mm) Ex Shanghai in China stands at USD 561/MT, highlighting a stable and predictable market scenario. Overall, the stable pricing context in the APAC region for Q2 2024 reflects a balanced and controlled market, conducive to sustained economic activities and industrial growth.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Steel Wire Rod market in North America encountered various obstacles that had an impact on prices. Global supply chain issues, such as port congestion and shipping delays, led to a decrease in demand for Steel Wire Rods. Additionally, the rising costs of raw materials contributed to fluctuations in prices. Furthermore, ongoing trade disturbances between major economies affected market sentiment, resulting in a pessimistic outlook.
In the United States, the Steel Wire Rod market experienced moderate demand, particularly with reduced consumption in the automotive and construction industries. Despite this, the market sentiment remained stable, and there was a moderate supply.
However, due to lower consumption rates, there was an increase in the availability of Steel Wire Rods. Compared to the same quarter of the previous year. Wire Rod (A36-8 mm) Ex Texas was priced at USD 1395/MT during this quarter. To summarize, the Steel Wire Rod market in North America encountered several challenges during the first quarter of 2024. These challenges led to a bearish outlook and price fluctuations.
APAC
During quarter 1 of 2024, the Steel Wire Rod market in the APAC region experienced various challenges and trends, the demand for Steel Wire Rods remained low in the construction and automotive sectors in the region. This sustained demand helped stabilize prices to some extent. However, market participants approached the situation cautiously. The prices of the Steel Wire Rod have slightly declined trend observed over the last week due to the weak downstream demand and high inventory level impacting the final prices. Demand will be relatively slow in the near term. delayed resumption of construction works due to adverse weather conditions and end-users halting operations resulted in reduced logistics and downstream demand. The absence of robust stimulus measures and the lacklustre performance of China's real estate market have fuelled pessimism. The largest producer and consumer of Steel Wire Rods in the region, the market situation remained relatively weak. High supply and low demand, combined with a hesitant approach from market participants, led to limited profits for steel mills and price stability. In conclusion, the Steel Wire Rod market in the APAC region during quarter 1 of 2024 was still affected by supply chain disruptions. The latest price of Wire Rod (Q235-8 mm) Ex Shanghai in China for the current quarter is USD 561/MT.
Europe
The European Steel Wire Rod market in Q1 of 2024 encountered various factors that influenced pricing and demand. One prominent factor was the disruption in trade routes, which led to a surge in freight charges and limited availability of Steel Wire Rods. Multiple shutdowns in trade routes caused significant disruptions, further exacerbating the situation. Germany emerged as a slight increase market with moderate supply and demand levels. The construction and infrastructure sectors played a crucial role in driving demand for Steel Wire Rods in the country. Furthermore, initiatives promoted green energy sustained demand for steel products. Although mills resumed production, high demand resulted in decreased inventory levels and caused price fluctuations. Overall, the Steel Wire Rod market in March, contributing to Steel wire rod prices settling at USD 711/MT in FD-Ruhr (Germany), including disruptions in trade routes and weak demand from major sectors, leading to a decline in prices. The market witnessed multiple shutdowns in trade routes, resulting in increased freight charges. Nonetheless, Germany demonstrated market stability with balanced supply and demand levels. The demand from construction, infrastructure, and green energy sectors contributed to high demand for steel products.
For the Quarter Ending December 2023
North America
The Q4 2023 Steel Wire Rod pricing declined significantly in the North American region, impacted by various factors. Firstly, In October, despite a global increase in the dollar price, US steel Wire Rod prices remained low, impacted by transportation constraints from diminishing water levels in the Mississippi and Ohio rivers. Caution in Hot Rolled Coil purchases was observed due to the potential United Auto Workers strike. The USITC's decision to revoke countervailing duty orders stabilized prices but concerns about inflation and a seasonal decline in demand persisted. November saw stability despite rising international dollar prices and ongoing challenges.
The anticipation of a strike and USITC decisions contributed to price stability, while heightened production led to increased inventory levels. December exhibited steady prices, driven by reduced supply and the expectation of increased order fulfillment in January-February. Market participants anticipated rising steel prices, aligning with recent price hikes by US steel mills.
The reduction in spot supply, declarations of price increases by major manufacturers, and active ordering for the next quarter fueled optimism for future Steel Wire Rod prices. The last week of December maintained price stability amid reduced trade activity, weather challenges, and global disruptions, including a case filed against Houthi rebels. Diminished consumption in downstream construction industries was observed due to a decline in manufacturing activity in cold weather. The latest settled prices of Steel Wire Rod (A36-8 mm) Ex Texas in the USA at the quarter ending December 2023 was USD 1463/MT.
Asia-Pacific
The APAC region's Steel Wire Rod market exhibited a stable trend in Q4 2023. Due to surging raw material prices, Taiwanese steel mills, including Chung Hung Steel Corporation and China Steel Corporation, initially raised prices in response to increased costs of iron ore and steel scrap. Despite stagnant demand from Europe and the US, market confidence persisted as substantial orders were placed. In October, price adjustments were initiated to counter rising production costs, expected to continue into the last quarter. In November, Taiwan's spot market saw a notable increase in Steel Wire Rod prices due to supply constraints, heightened demand from automotive and construction sectors, and disruptions in the Panama Canal affecting iron ore imports. In December, Steel Wire Rod pricing followed a specific trajectory influenced by reduced demand during the winter and holiday seasons. Disruptions in trade routes, particularly in the Panama Canal and the Red Sea, further challenged market sentiment. Adverse weather conditions and reduced demand from the construction sector caused a slowdown in manufacturing activity across Taiwan. The latest price of Wire Rod (1008AK-8 mm) Ex Tainan in Taiwan for Q4 2023 was USD 1072/MT.
Europe
The European Steel Wire Rod market experienced a notable rise in price trend in Q4 2023, with sufficient demand and lower supply. Initially, in the German steel market, Steel Wire Rod prices stabilized in October as mills and distributors reduced operations during the holiday break. Rebar prices increased in the first half of October due to restocking, but demand tapered off, leading to stable prices. Pessimism exists for October, with concerns of declining demand and potential price decreases next month. Steel Wire Rod prices slightly increased in October due to tight supply and demand recovery from Polish construction industries. In November, Steel Wire Rod prices remained stable despite a decline in consumer purchasing activity, influenced by public holidays and cautious buying due to well-stocked warehouses. The market stagnated in November, with favorable outcomes for prominent manufacturers but difficulties for smaller fabricators. German crude steel production declined in October due to elevated energy prices and subdued demand. In December, Steel Wire Rod prices held steady with reduced activity in downstream industries. Optimism for the next quarter arises from expectations of robust orders in January-February. However, interest in the Steel Rebar market declined due to trade slowdown, adverse winter conditions, and escalating prices. International market uncertainties include increased freight charges due to attacks by Houthi rebels in Yemen, prompting a cautious "wait-and-see" approach among buyers. The latest price of Wire Rod (5.5 mm) CFR Bremen in Germany for the last quarter is USD 716/MT.
