US Stainless-Steel HR Coil Prices Show Declining Trend as Domestic Supply Uplifts

In the second half of Q4 of 2023, the price of Stainless-Steel HR Coil plunged in the US spot market as the stock increased in the domestic warehouses along with the decline in feedstock Nickel prices. The supply of feedstock Nickel remained surplus in the global market as the major producers expanded their extraction rate in the local and overseas mines. The demand for the Stainless-Steel HR Coil also showed a minute increase as the concern regarding the US federal Interest rate hikes and winter's arrival halts the trade in the fourth quarter of 2023.

The increasing supply in the local warehouses backed the declining price trend. The Stainless-Steel HR Coil inventories increased by 2% in October from the previous month's comparison, adding a total of 900 MT to the local inventories. The increased output has been pushed forward as Outokumpu, the major Stainless-Steel HR Coil manufacturer across the USA, has now signed a deal with ArcelorMittal Nippon Steel (AM/NS) to expand the hot rolling services in the Americas. The output quantity for the Stainless-Steel HR Coil is anticipated to be increased by 900 KT in the upcoming year. This deal was promoted by extending Outokumpu's second phase of its strategy, which aims at targeted productivity investments to improve margins and additional investment to improve sustainability for Stainless-Steel HR Coil in the USA. Furthermore, market participants noted a minimal fluctuation in the price of Stainless-Steel HR Coil during the automotive workers' strike against major automobile manufacturers, which persisted until the end of October.

Additionally, the Stainless-Steel HR Coil prices are dampening as the supply of feedstock Nickel remained on a higher edge amidst consumption decline from the downstream batter industries. The Russian mining and metals giant Nornickel has raised its global nickel surplus estimate for the last quarter as the production remained firm amidst lower buying rates from domestic consumers. The supply is anticipated to be a surplus of 250,000 MT, increasing by 20% from the previous year. Furthermore, the Canadian mining company CaNickel Mining is offering to sell its Bucko Lake nickel project for USD 59 million to the Cobalt One Energy company. Most nickel-extraction companies face losses as consumption decreases and production continues upward. This has proved to be a major drawback in the growth of the Stainless-Steel HR Coil market in the USA.

According to ChemAnalyst, the price of the Stainless-Steel HR Coil is anticipated to remain low till the end of December 2023. The market players anticipate price growth in the upcoming first quarter of 2023, as the mills have shown a tendency to increase the alloy surcharges and production cot from January. The buyers have also shown interest and are placing new orders for the January-February period of the first quarter of 2024.