Cold Rolled Coil Prices Trend in the second quarter of 2023 | ChemAnalyst

North America:

During the second quarter of 2023, Cold Rolled Coil (CRC) prices in the United States initially saw an uptick in April before undergoing a subsequent overall decline. In the first month of the quarter, CRC prices in the US spot market rose as local mills maintained a high base price, fostering a positive market sentiment for both domestic and international buyers. Delivery times improved, reducing from 7-9 weeks to 7-8 weeks, leading to lower local inventory levels and increased CRC prices in the US spot market. However, as the second quarter progressed, the market sentiment for CRC took a downturn due to growing economic instability stemming from a debt crisis triggered by major banks’ failures across the USA. Inflation rates escalated, and the Federal Reserve’s decision to raise interest rates further exacerbated the economic conditions. Consequently, buyers hesitated to make significant purchases, resulting in a sluggish US CRC spot market. Furthermore, a decline in employment rates affected the manpower in the downstream US infrastructure sector, causing reduced demand for CRC in the US spot market. High local inventory levels prompted the US government to impose countervailing duties on CRC imports from Indian and European suppliers. Toward the end of Q2, the US government extended the debt crisis for two more years, offering hope for a revival of the US CRC market in the upcoming quarter.

Asia:

In the second quarter of 2023, Chinese Cold Rolled Coil (CRC) prices experienced a decline. Early in Q2, raw material prices, such as coking coal, decreased as production rates increased, generating profitable margins in the domestic spot market. However, the export rate plummeted due to rising inflation and uncertain economic conditions, reducing demand from overseas markets in the US and Europe. Trade tensions escalated following the imposition of anti-dumping duties on Chinese steel products by the European Union and the US government. External factors, including the Qingming Festival and heavy rain, disrupted CRC demand and consumption in China. Downstream construction activity also slowed significantly due to the monsoon’s arrival, impacting construction and infrastructure projects across the Chinese spot market. Additionally, the automotive sector faced declining demand as rising inflation reduced local customers’ purchasing power, resulting in an oversupply of CRC. To counter these challenges, the Chinese government implemented economic stimulus measures toward the end of the second quarter of 2023.

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Europe:

In the second quarter, Italian-made Cold Rolled Coil (CRC) initially saw a price increase in the early phase of Q2, followed by an overall decline in the latter half. In April, CRC prices surged in the Italian spot market, driven by robust growth in the downstream automotive industry, which generated ample demand and prompted local Italian steel mills to raise CRC prices. However, inventory levels dwindled in the early part of Q2 due to delays in overseas deliveries from the ArcelorMittal plant in Italy. Conversely, during the latter half of the second quarter, the economic downturn in the global market negatively impacted the sentiment for CRC throughout Europe. Declining construction activity reduced CRC consumption, leading to an accumulation of inventory in the Italian spot market. Labor shortages across Europe further impeded construction work in Italy. The Italian government’s plans to increase interest rates deterred buyers, prompting Italian steel mills to lower their offer prices in the latter part of the second quarter. Additionally, the European Union imposed dumping duties on imported Cold Rolled Coil from Chinese and Indian markets.