China Steel Wire Rod Prices Rise at April-end, USA and German Sustain their Downtrend

During the week ending April 26th, Steel Wire Rod prices in the US witnessed a decline. The market saw a decline in prices and trading activity, with slow inventory reduction and a persistent dullness in automotive sales. In Germany, prices decline with decreasing freight costs from China to the Mediterranean in last week of April. Meanwhile, Chinese Steel Wire Rod prices increased alongside rising freight and petroleum coke costs, driven by global market improvements and China's economic growth. These price changes reflect ongoing shifts in global economic factors affecting the steel industry, highlighting evolving supply chains and market dynamics.

As of the week ending April 26th, a marginal 0.2% drop in Steel Wire Rod prices was observed in the US market. The pricing trend for these rods witnessed a descent, and activity in the spot market remained rather lacklustre, marked by declining prices and trading volumes. While there was some demand noted for restocking in the market, it's important to note that inventory reduction is occurring at a slow pace, with significant levels of inventory consolidation still evident. Additionally, April witnessed an 8.2% decrease in automotive sales compared to the previous month. Consequently, Steel Wire Rod prices outside of Texas (USA) experienced a decline on April 26th.

Steel Wire Rod prices in the domestic market of Germany experienced a 0.3% reduction. The German pet coke market-maintained price stability, although there was a slight downward trend in the third week of April 2024. The decline in German Steel Wire Rod prices this week can be attributed to low demand and limited trading activity. Certain participants are anticipating restocking before the onset of summer. The market has remained subdued throughout this week, contributing to the weekly decrease in Steel Wire Rod prices in FD-Ruhr (Germany) on April 26th.

There was a slight increase of 0.2% in Chinese Steel Wire Rod prices, coinciding with a significant 16.8% surge in freight costs from the Mediterranean to China and East Asia compared to the previous week. Moreover, petroleum coke prices also rose by 6.9% over the same period. These price movements are attributed to the overall improvement in global market sentiment and China's economic growth. While challenges persist in the real estate sector, exports are showing a strong recovery. Consequently, Steel Wire Rod prices saw a modest rise. These fluctuations highlight the complex interactions among global economic factors affecting the steel and related sectors, demonstrating ongoing changes in supply chains and market dynamics.

ChemAnalyst predicts, the United States will witness shifts in pricing trends due to increased demand in related sector such as automotive, driven by seasonal changes that boost demand. In Germany, the cost of Steel Wire Rods may rise due to rising raw material costs. Fluctuations in Steel Wire Rod prices are influenced by disruptions in the Red Sea. On the other hand, China could see a surge in demand from the construction industry, leading to increased purchases and an upward trend in Steel Wire Rod prices. These varying market dynamics across different regions underscore the complex interplay of factors influencing pricing trajectories in the global Steel Wire Rod market.