Category

Countries

Global Cold Rolled Coil Market Struggles with Declining Prices and Supply-Demand Imbalances
Global Cold Rolled Coil Market Struggles with Declining Prices and Supply-Demand Imbalances

Global Cold Rolled Coil Market Struggles with Declining Prices and Supply-Demand Imbalances

  • 13-Aug-2024 7:30 PM
  • Journalist: Stella Fernandes

As of the week ending on August 2nd, the US Cold Rolled Coil market is facing challenges with increased supply and decreased demand, leading to lower prices. The residential construction sector is slowing down due to high interest rates, impacting consumer confidence. Moreover, in Germany the Cold Rolled Coil market experienced price declines attributed to subdued demand and ample supply. Meanwhile in China, the Cold Rolled Coil market faced supply and demand challenges with inventory build-ups and new quality standards affecting supply.

As of the week ending on August 2nd, the US Cold Rolled Coil market is currently encountering significant obstacles, marked by an uptick in supply and a downturn in demand, resulting in a decrease in prices. Despite continued production, domestic producers have been compelled to lower prices due to ample inventory levels. The residential construction sector is facing a slowdown, influenced by high interest rates that are impacting consumer confidence. Similarly, the automotive industry's mixed performance is contributing to subdued overall demand for Cold Rolled Coil products. Furthermore, service centres have scaled back procurement activity in response to sluggish end-user demand, exacerbating the imbalance between supply and demand. Additionally, the Producers Price Index, as indicated by FRED, decreased by 0.4% in June, reflecting limited manufacturing activity within the region, with the potential for an increase in July.

As of the week ending on August 2nd, the Cold Rolled Coil market in Germany has observed a price decrease, indicative of the prevailing market dynamics characterized by subdued demand and ample supply. This decline occurs amidst broader economic challenges, as evidenced by a 12% year-on-year reduction in orders for German mechanical engineering and plant-building companies in the first half of 2024. Klöckner & Co, a prominent steel distributor, reported a challenging second quarter, contrasting sharply with the previous year's profit. Despite the continued market uncertainty and sluggish performance of the automotive industry, stable prices were maintained, particularly in countries like Germany, Spain, and Italy. Additionally, ArcelorMittal Europe reported a year-on-year increase in steel shipments for the second quarter, signalling a strengthening supply scenario of Cold Rolled Coil. The quieter market activity during the summer holiday period has impacted both domestic and foreign demand for Cold Rolled Coil. Overall, the market is under persistent pressure with prices experiencing a slight decrease amidst cautious market sentiment and fluctuating business inflows across sectors. Additionally, Germany’s PMI declined by 3.4% in July, indicating a reduction in manufacturing activity within the region.

As of the week ending on August 2nd, the Cold Rolled Coil prices experienced a slight decline due to an imbalance in demand and supply. The China Cold Rolled Coil (CRC) market encountered a combination of supply and demand challenges. Supply dynamics were strained because of inventory build-ups and the impact of new quality standards. External disruptions, notably Typhoon Gaemi, had a severe effect on logistics and production, leading to factory shutdowns and halted mining operations in key regions. Despite these setbacks, there was a minor increase in molten iron production due to the resumption of some blast furnaces. Additionally, the market encountered difficulties with declining vehicle sales, indicative of broader economic weakness. This sluggish demand of Cold Rolled Coil, alongside a weak construction sector and declining steel prices, contributed to a cautious market sentiment. Cold Rolled Coil prices experienced a marginal decrease, and the overall market remains cautious, anticipating potential policy measures to bolster demand. Furthermore, in July, the Manufacturing PMI decreased by 0.2% based on the data provided by NBS, signalling a slight decline in manufacturing activity compared to the previous month.

According to a ChemAnalyst, there are indications that Cold Rolled Coil prices in the USA are poised to rise due to growing demand in various sectors. Similarly, Germany is contemplating strategies to bolster its domestic Cold Rolled Coil industry, potentially influencing global price trends. Additionally, the expanding automotive sector in China is expected to stimulate global demand for Cold Rolled Coil.

Related News

Cold Rolled Coil Prices Decline in US and Germany; China Remains Stable
  • 05-Oct-2024 1:30 AM
  • Journalist: Jung Hoon
Global Cold Rolled Coil Prices Slip as Demand Weakens Across Key Sectors
  • 25-Sep-2024 3:17 PM
  • Journalist: Patricia Jose Perez
CRC Market Shifts Negative in Germany and China in Mid-September 2024
  • 17-Sep-2024 1:41 PM
  • Journalist: Harold Finch
Global Cold Rolled Coil Prices Drop as Demand Falters and Supply Surges
  • 03-Sep-2024 3:59 PM
  • Journalist: Jai Sen