Steel Plate Price Stable Across Europe in January H2 Amidst Uncertainties in Market Trend

In the week ending January 26, the price of Steel Plate across the European market showed a static trend across the European market as the demand from the downstream automotive and infrastructural development sector remained flat. The European mills have now pushed for the production of Green Steel, but the absence of effective regulation and a uniform approach is constraining the level of purchasing interest in such materials. Furthermore, the German Rail strike by the local GDL train drivers' union has impacted the metal trading including the Steel Plate export rate. The import of Steel-based products was already higher since the end of the last quarter of 2023.

The supply of Steel Plate in the European spot market has been on a higher edge as the local manufacturers and import rate showed an inclining price trend. ArcelorMittal, the major manufacturer of Steel Plates has boosted its production rate after the installation of the new electric arc furnaces in the Luxembourg plant. This was promoted by the recent investment in decarbonization, product quality, and increasing capacity to support the reduction of the carbon footprint and reduce overall emissions, in the European region. Furthermore, the import rate of Steel Plates in Europe was on a higher edge in the year ending 2023.

The global trade disruption through attacks carried out by the Houthi Groups in the Suez Canal route has severely affected the Steel Plate price across Europe. Several Asian steel producers departed the European market due to the imposition of approximately USD 75 per tonne in shipping expenses and a three-week transit around South Africa's Cape of Good Hope. Leading shipping firms, such as Denmark's Maersk, redirected all their vessels away from the Suez Canal, a route that typically accommodates 15% of global shipping traffic under normal circumstances. These created uncertainties in the trading and price for Steel Plates in Europe from the overseas Asian market. Meanwhile, the consumption of Steel Plates from the downstream construction and infrastructural development sector lacked interest as the lack of proper regulation for usage and acknowledgment of the reduced carbon steel kept the demand on a declining trend. The market players across the European region and proposing local governments to uplift the Green Steel sector amidst significant investments for green steel projects have been observed, to reduce emissions across the European market.

According to ChemAnalyst, the price of Steel Plates across the European spot market is anticipated to show a Slightly inclining trend as the upcoming demand has been expected to hold strong from the downstream construction and automotive industries. Furthermore, the recent freight hike will back the rising price trend for Steel Plates in the European spot market.