Cold Rolled Coil prices Face Minor Fluctuations in Germany, USA and China amidst Optimistic Outlook

By the conclusion of the week ending May 17th, Cold Rolled Coil prices in the US market experienced a marginal decrease, triggering notable fluctuations and caution among buyers. Meanwhile, Germany saw a slight increase in Cold Rolled Coil prices, alongside a substantial rise in freight costs from China/East Asia to Northern Europe. In China, prices experienced a decline, reflecting monthly decreases in producer, and purchasing prices for industrial goods.

As the week concluding on May 17th ended, there was a slight dip of 0.3% observed in Cold Rolled Coil prices in the US market. Notable price fluctuations have ensued, prompting cautious behaviour among purchasers, and prompting the market to seek direction. A prevailing sense of dissatisfaction lingers among market participants regarding current circumstances. To uphold competitiveness, numerous producers have chosen to reduce their prices. According to the Producer Price Index by Commodity: Metals and Metal Products, Cold Rolled Steel Sheet and Strip experienced a 3% decline in April compared to the preceding month, as reported by FRED. Consequently, this element contributed to a weekly decrease in Cold Rolled Coil prices for DEL-Illinois (USA) by May 17th.

Germany observed a slight uptick of 0.1% in Cold Rolled Coil prices. Concurrently, freight costs from China/East Asia to Northern Europe spiked by 10.9% within the same timeframe. April saw a 19.8% surge in automobile sales volume compared to the previous year, impacting the availability of Cold Rolled Coil. Quarterly indices reflecting the prices of typical new constructions and maintenance work on residential buildings, relative to the base year, rose by 1.4% in the first quarter of 2024. This suggests an increasing demand for Cold Rolled Coil in Germany's domestic market. The culmination of these factors led to Cold Rolled Coil prices marking a slight increase compared to the preceding week.

There was a 0.2% decline observed in Cold Rolled Coil prices within China. Monthly data reveals that producer prices for industrial goods and purchasing prices for industrial producers both experienced decreases of 0.2% and 0.3% respectively. From January to April, producer prices for industrial goods witnessed an average decline of 2.7% compared to the corresponding period last year, while purchasing prices for industrial producers dropped by 3.3% in April, as per NBS China data. The gradual recovery of the global Cold Rolled Coil market can be attributed to downstream customers' demands for replenishing inventory and their export competitiveness. Market dynamics concerning supply and demand imbalances have mitigated the significant surplus in supply, resulting in a period of instability in the Cold Rolled Coil market. Consequently, there was a slight decrease observed in Cold Rolled Coil prices.

As per the ChemAnalyst, a surge in demand from downstream industries in the USA might impact Cold Rolled Coil prices. Increased procurement activities in the construction industry may drive price increases. Anticipated efforts by the German government to revive the Cold Rolled Coil sector are likely to push prices upward. Furthermore, China's growing demand in the automotive sector could raise global Cold Rolled Coil demand, potentially impacting future prices.