Stainless Steel HR Coil Prices, Pricing, Demand & Supply, Market Analysis | ChemAnalyst

For the Quarter Ending June 2023

North America

During the second quarter of 2023, the price of Stainless-Steel HR Coil in North America experienced a downward trend. This decline was primarily attributed to the worsening economic conditions, particularly the decline of major banks and the resulting debt crisis in the USA. The market sentiment became pessimistic due to rising inflation rates and increased interest rates. As a result, the purchasing power of buyers decreased, leading to an increase in local Stainless Steel inventory levels. In the initial phase of Q2, there was a sustainable rise in the price of Stainless-Steel HR Coil as the Feedstock Nickel price rebounded. US mills kept the base price high, and the addition of the alloy surcharge contributed to an increased price trend in the US spot market. However, the market condition worsened in the latter half of the second quarter as the consumption from the downstream automotive sector remained low. The inflation rate continued to rise, further reducing the buying capacity of customers and resulting in minimal vehicle sales. Additionally, the labor shortage in the USA led to lower activity rates in the construction sector, thereby reducing the demand for Stainless-Steel HR Coil. The declining price of feedstock commodities such as iron ore and NPI in the global and US spot market, influenced by overseas Chinese stimulus bets, discouraged buyers from placing large orders, prompting local mills to lower their offer prices.

Asia-Pacific

The Chinese Stainless-Steel HR Coil market also experienced a decline in prices during the second quarter of 2023. Initially, in April, prices saw an increase due to rebounding feedstock Nickel prices. Market conditions were favorable, leading to profits for Stainless-Steel manufacturing units. The declining inventory level of feedstock Nickel and increased funding in the Chinese market created an optimistic market sentiment, resulting in price growth. The rising price of Stainless-Steel scrap further improved the market for local Chinese mills. However, in the latter half of the second quarter, the price trend reversed, and the price of Stainless-Steel HR Coil declined. The rising inflation rate and economic uncertainty in May contributed to a bearish market sentiment. Despite high production rates in Stainless-Steel mills, the reduced construction activity during regional holidays and economic instability negatively impacted the Chinese spot market. Towards the end of the quarter, the Chinese government implemented various stimuli to uplift the economy. Buyers remained cautious and adopted a wait-and-watch approach, leading local mills to reduce their offer prices.

Get Real Time Prices of Stainless Steel HR Coil: https://www.chemanalyst.com/Pricing-data/stainless-steel-hr-coil-1368

Europe

In Europe, the price of Stainless-Steel HR Coil also declined during the second quarter due to a pessimistic market sentiment in the downstream construction and automotive industries. Germany’s economic condition deteriorated, with the country entering a recession. The construction activity across the German spot market was adversely affected by the economic decline, rising inflation rates, and increased costs of feedstock materials. Furthermore, labor shortages became a major concern, leading to worker protests in Belgium demanding equal payment for workers appointed by local contracting companies. They called for the implementation of a centralized recruitment process in the construction and building industries. The downstream automotive industry in the German spot market suffered as major car companies like Nissan and Kia shut down their plants due to the declining economic conditions, resulting in reduced customer buying capacity and vehicle sales. Market uncertainty led customers to hesitate in placing large orders, prompting local mills to reduce their offer prices for Stainless-Steel HR Coil in Germany.