Hastelloy Prices Rise in US and Germany Amid Supply Challenges; China Faces Downward Pressure

In September, the global Hastelloy market reflected a diverse landscape with varying challenges and opportunities across key regions. USA and Germany experienced increased in price of Hastelloy due to tighter supply and increasing demand. Meanwhile in China Hastelloy observed downward pressure in prices due to market uncertainty.

The U.S. Hastelloy market is experiencing a complex landscape, characterized by supply challenges, and rising demand in September. Recent disruptions from Hurricane Helene have significantly affected supply chains, complicating production efforts. In contrast, demand for Hastelloy is on the upswing, bolstered by a notable increase in new vehicle sales in September, with total inventory rising. Additionally, Nippon Steel's planned $1 billion investment in US Steel's Mon Valley Works is projected to generate substantial economic activity in Pennsylvania. Export data reflects resilience as tool steel exports slightly increased, indicating a broader market recovery. Coupled with the introduction of anti-dumping measures for imported products, these factors have contributed to a marginal increase in Hastelloy prices. Overall, while the market faces short-term challenges, the foundation for growth appears strong amidst evolving demand dynamics. Furthermore, US market reflecting decrease in manufacturing activity in September month on month.

The Germany Hastelloy market observed price increase in September, reflecting tighter supply and increase in demand. Moreover, Hastelloy output has fallen, with pig iron production experiencing monthly declines. Despite this, strategic investments in the steel sector, like Thyssenkrupp’s new electric strip annealing line and CRONIMET’s acquisition of MetallPlast Recykling, aim to boost efficiency and strengthen supply chains. Additionally, the demand of the automotive sector has shown strong recovery, with car sales and production increasing, particularly for hybrid and electric vehicles. This uptick in demand supports Hastelloy consumption, signalling positive market momentum. Despite, Germany Manufacturing activity fell in September month on month.

In September, the China Hastelloy market the increase in supply combined with weak downstream demand, has kept prices under pressure. Moreover, supply has surged as production levels increased steadily throughout the year, supported by high operating rates at steel mills. The rise in daily pig iron output, along with easing raw material costs, has boosted production, although prices have slightly decreased due to weak demand. Despite supply growth, demand has been sluggish, particularly in sectors like automotive and construction, which have seen downturns due to the real estate market’s slowdown. While China introduced supportive policies to revive consumption, the impact has yet to materialize significantly. Despite, China's manufacturing activity increase within the region, according to National Bureau of Statistics of China.

As per ChemAnalyst, the growing automotive industry demand could drive up Hastelloy prices in both the United States and Chinese markets. In contrast, Germany is expected to witness a decline in Hastelloy usage, which may exert downward pressure on prices in that region.