For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a challenging period for Chequered Plate pricing, marked by a consistent decline in market prices. Several significant factors influenced this downward trend. The manufacturing sector faced contraction, with a notable decrease in new orders impacting demand for Chequered Plate. Furthermore, the construction industry experienced challenges such as reduced backlogs, negative contractor confidence, and postponed projects due to high borrowing costs and increased delivery expenses. These factors contributed to a low demand environment, leading to moderate supply conditions in the market.
Within the USA, which saw the most significant price changes, the Chequered Plate market reflected overall negative trends. The correlation between nickel and iron markets played a crucial role, with challenges stemming from elevated LME nickel inventory levels and sluggish demand from downstream industries. The manufacturing sector's growth rate decreased due to a drop in new orders, while the automotive sector experienced a decline in sales, further impacting demand for Chequered Plate.
Overall, the quarter exhibited a consistent decrease in prices, with a 1% decrease from the previous quarter in 2024. The comparison between the first and second half of the quarter showed a slight decline of -1%. The quarter closed with the price of USD 4549/MT for SS Chequered Plate (6 mm) DEL Texas in the USA, reflecting the prevailing negative pricing sentiment in the market.
APAC
In the APAC region for Q3 2024, the Chequered Plate market witnessed a significant downturn, marked by a host of compelling factors. The prevailing market conditions were heavily influenced by an oversupply of steel products, exacerbated by weakened demand across various industries such as construction and automotive. Uncertainties in global economic trends, coupled with subdued manufacturing activities, added to the downward pressure on prices. The suspension of steel capacity replacement programs in China contributed to a cautious approach in managing industry dynamics, impacting supply levels. Seasonal factors like extreme weather conditions further hampered market demand, creating a challenging environment for Chequered Plate pricing.
Specifically focusing on China, the market experienced notable price fluctuations, reflecting a bearish sentiment. The price decline of 10% from the previous quarter underscored the challenging landscape for Chequered plate. This negative trend continued with a 4% drop in prices between the first and second half of the quarter, highlighting the persistent downward trajectory. The quarter-ending price of USD 1956/MT for SS Chequered Plate (304-6 mm) Ex Tangshan in China epitomizes the overall decreasing pricing sentiment in the region.
Europe
In Q3 2024, the pricing environment for Chequered Plate in Europe remained stable, influenced by various factors. Fluctuations in raw material costs, particularly nickel, and supply chain disruptions due to extended summer maintenance closures played a significant role. Germany, experiencing the most significant price changes, saw a delicate balance between supply and demand. The market faced challenges from a struggling manufacturing sector, impacting demand dynamics. It's worth mentioning that the prices of scrap materials have remained consistent in recent times, offering manufacturers a degree of respite concerning their production expenses. Despite moderate supply levels, the automotive industry's growth, especially in electric vehicles, and a resurgence in construction activities provided stability for the market. Seasonal trends and correlation in price changes were notable, with a recorded 3% increase from the previous quarter but no change between the first and second half of the quarter. The quarter-ending price for SS Chequered Plate (304-5mm) Ex Ruhr in Germany stood at USD 3870/MT, reflecting the overall stable pricing sentiment in the region.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed an upward trajectory in Chequered Plate prices across the North American region, driven by a confluence of factors that bolstered market dynamics. This quarter marked a period of significant price growth, influenced by constrained supply chains, robust demand from key sectors such as construction and automotive, and escalating costs of raw materials like zinc and nickel. Furthermore, scheduled maintenance outages at major steel mills, such as Acerinox and Outokumpu's Calvert facility, exacerbated supply-side limitations, contributing to the price surge.
In the USA, the market saw the most pronounced price changes. The quarter was characterized by bullish sentiment, with Chequered Plate prices progressively increasing. The overall trend exhibited a positive correlation with seasonal demand patterns, especially from the automotive and HVAC sectors, which consistently sought galvanized and value-added steel products. Price changes were significantly correlated with heightened activity in construction and manufacturing, despite a noted deceleration in broader manufacturing indices.
The quarter recorded a notable 14% increase from the previous quarter in 2024, underscoring the robust pricing environment. The quarter culminated with the price of SS Chequered Plate (6 mm) delivered in Texas reaching USD 4641/MT, cementing the period as one of pronounced price positivity. The cumulative effect of these factors rendered the pricing environment distinctly favorable, underscoring the market's resilience and responsiveness to both internal and external pressures.
APAC
In the second quarter of 2024, the pricing environment for Chequered Plates in the APAC region has been predominantly negative. The market experienced a notable decline due to several key factors. Weak downstream demand, particularly in the construction and automotive sectors, significantly dampened market sentiment. Additionally, high raw material costs, particularly nickel, contributed to increased production costs but couldn't sustain higher market prices due to the overall weak demand. Seasonal slowdowns further exacerbated the situation, leading to an oversupply in the market.
Focusing on China, the country experienced the most significant price changes. The overall trend in China displayed a consistent downward trajectory, influenced by weakening demand from the property sector and subdued infrastructure investments. Seasonality played a crucial role, with the post Labour Day period marking a significant decrease in downstream consumption. The correlation in price changes was evident as high production costs and weak end-user demand maintained a bearish market sentiment.
Prices dropped by 1% in this quarter, as compared to prices int the previous quarter. The latest quarter-ending price for SS Chequered Plate (304-6 mm) Ex Tangshan in China stood at USD 2179/MT. Overall, the pricing environment has been decidedly negative, marked by persistent challenges in balancing supply with waning demand, and no significant plant shutdowns or disruptions reported.
Europe
In Q2 2024, the European market for Chequered Plates witnessed a pronounced upward pricing trajectory, driven by several significant factors. The quarter was characterized by escalating alloy surcharges, surging energy costs, and stringent regulatory impacts from the EU Critical Raw Materials Act (CRMA) aimed at securing strategic raw material supplies. Furthermore, heightened demand from the automotive sector, despite broader manufacturing slowdowns, contributed to sustained price increases. Seasonality also played a pivotal role, with the spring construction season bolstering demand for high-quality steel products.
Germany emerged as the focal point of these market dynamics, experiencing the most substantial price changes in the region. The robust demand from the domestic automotive sector, coupled with the ECB’s interest rate cut, helped maintain an overall bullish sentiment. The correlation between energy costs and metal prices was particularly strong, reflecting the significant influence of fluctuating gas and CO2 emissions prices on production costs. Additionally, the introduction of shipping surcharges due to geopolitical disruptions around the Suez Canal further exacerbated price pressures.
Compared to the previous quarter, German Chequered Plate prices surged by 14%, reflecting a consistent upward trend. The quarter concluded with prices peaking at USD 3847/MT for SS Chequered Plate (304-5mm) Ex Ruhr, marking a significant rise. This pricing environment has been predominantly positive, driven by a confluence of regulatory, economic, and seasonal factors, with no major plant shutdowns reported during this period.
For the Quarter Ending March 2024
North America
In Q1 2024, the Chequered Plate market in North America experienced a stable pricing environment, with some fluctuations in the USA. The overall trend for Chequered Plate prices in the region was influenced by factors such as an increase in production costs, declining downstream demand, and global Nickel mining expansion.
In the USA, Chequered Plate prices showed a marginal decline compared to the previous quarter. This decrease can be attributed to an oversupply of Nickel feedstock stored in regional warehouses and sluggish demand from downstream industries. The winter holidays and New Year celebrations also dampened demand in the US spot market, particularly in the construction and automotive sectors.
Globally, Nickel mining saw significant advancements, with increased feedstock supply. The long-delayed Minnesota Copper-Nickel Mining project overcame setbacks, leading to a boost in Nickel mining activity. Cheaper imports from Chinese manufacturers prompted some US Chequered Plate industries to shift investments from Brazil to China, resulting in lower domestic prices for international competitiveness. Looking at the price changes in the USA, there was a marginal decline compared to the same quarter last year. Overall, the pricing environment for Chequered Plate in North America during Q1 2024 can be characterized as stable, with some downward pressure in the USA due to oversupply and weakened demand.
Asia-Pacific
The Q1 2024 pricing environment for Chequered Plate in the APAC region has been influenced by several significant factors. Overall, the market has experienced a stable to slightly negative sentiment. In China, which has seen the maximum price changes, the market has been mostly bearish. The supply of Chequered Plate has been high, with inventory levels showing a notable increase. This has been driven by decreased consumption in both local and overseas markets, particularly in the automotive industry. The demand for Chequered Plate has been low, with consumption rates declining in downstream industries. Chinese manufacturing activity has also contracted, leading to calls for stimulus measures. Uncertainty in economic factors and increased supply have contributed to cautious buyer behaviour in the Chinese spot market. Looking at the quarter, the pricing environment for Chequered Plate has been mostly negative, with prices showing a decline compared to the same quarter last year. However, there has been some stability in the market, with prices remaining relatively consistent throughout the quarter. In conclusion, the Q1 2024 pricing environment for Chequered Plate in the APAC region has been mostly negative, with prices declining due to decreased demand and increased supply. The market has shown some stability, but uncertainty in economic factors and geopolitical instability have contributed to cautious buyer behaviour.
Europe
In Q1 2024, the Chequered Plate market in Europe experienced a stable pricing environment, with Germany witnessing the most significant price changes. Several factors influenced market prices during this quarter. Firstly, there was an oversupply of Nickel raw materials, leading to surplus inventories and a decline in prices. This oversupply was a result of increased mining operations globally, particularly in the battery and stainless-steel sectors. Additionally, disruptions in the Suez Canal prolonged lead times and raised freight costs to Asia, bolstering inventory levels in Germany. Germany, in particular, saw a decline in Chequered Plate prices in Q1 2024. This was due to reduced demand from domestic downstream industries, such as the construction and automotive sectors. The removal of German government subsidies for electric vehicles in December 2023 caused a decline in EV sales, impacting the Chequered Plate sector. However, there was some optimism in the construction sector and infrastructure development, which contributed to a rising demand for Chequered Plate in the German spot market. Overall, the pricing environment for Chequered Plate in Europe in Q1 2024 was stable, with Germany experiencing a decline in prices in the first two months and increase in the last month of Q1. There was an oversupply of Nickel raw materials and reduced demand from domestic industries, which influenced market prices. Despite these challenges, there were positive trends in the construction sector and infrastructure development, indicating potential growth in the future.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Chequered Plate market experienced a slight declining trend amidst several significant factors that impacted prices. Initially, the Chequered Plate prices in the US surged due to heightened demand from the chemical and automotive industries, coupled with limited upstream material supply. Despite robust economic indicators, the EU and the US failed to resolve a steel dispute. Metallurgical coke and non-coking coal prices rose globally.
However, in December, Chequered Plate prices in the US declined due to increased production, reduced consumption, and a rise in supply from key producer Outokumpu. Surpluses in Nickel and Chequered Plate Scrap persisted. The Australian coal industry faced disruptions, impacting market dynamics. Meanwhile, the wind power sector is expected to surpass coal in electricity generation by 2026. In December, Chequered Plate prices remained low in the US due to high inventory levels, reduced downstream demand, and winter-related disruptions.
Global Nickel mining expanded, with the Minnesota Copper-Nickel Mining project overcoming delays. Cheaper Chinese imports prompted US industry shifts. Winter holidays, severe weather, and uncertainties about government policies and the electric vehicle sector contributed to reduced demand in the US spot market. The latest settled prices of Chequered Plate (6 mm) DEL Texas in the USA at the quarter ending December 2023 was USD 10660/MT.
Asia-Pacific
The fourth quarter of 2023 proved to be challenging for the Chequered Plate market in the APAC region. In October, Chequered Plate prices in the Chinese spot market declined due to a shift in demand towards the southern direction, driven by Anti-dumping and Countervailing duties in the US and European markets. Uncertainty in upstream Steel scrap and Nickel availability in Chinese warehouses occurred. Chinese steelmakers sought iron ore, leading to the lowest Chinese iron ore stocks in 7 years. World Steel predicted a 7.7% growth in steel demand, causing iron ore inventories to hit a 7-year low. The US Anti-dumping duties contributed to decreasing Chequered Plates prices in China. In the latter part of the last quarter, Chequered Plate prices decreased due to increased Nickel supply and reduced consumption globally. The use of recycled material lowered manufacturing costs compared to high-grade NPI. In December, Chequered Plate prices in the Chinese spot market remained steady despite decreased demand globally. Adverse weather conditions reduced construction and manufacturing, while increased Nickel supply and an IPO in China influenced prices. A blast at a Nickel plant in Sulawesi further affected prices, making high-grade NPI more cost-effective. Trade disruptions in the Red Sea route raised concerns, and lower demand persisted during winter holidays, affecting US and European orders. The latest price for SS Chequered Plate (304-6 mm) Ex Tangshan in China at the end of the quarter was USD 2318/MT, showing an overall decline throughout the fourth quarter.
Europe
In the fourth quarter of 2023, the Chequered Plate market in Europe experienced various factors that impacted prices. Firstly, In October 2023, the German spot market saw an uptick in Chequered Plate prices, driven by increased demand from the automotive and chemical sectors and a decrease in upstream material supply. Global steel scrap and Nickel pig iron inventory levels dropped due to reduced production rates. The EU Carbon Border Tax faced initial challenges, prompting EU steelmakers to reinforce the export ban on EU ferrous scrap. Weak claims of circumvention against stainless steel products from Turkey, Taiwan, and Vietnam were noted, raising concerns about self-interest among EU steel producers amid uncertainties about the Carbon Border Adjustment Mechanism (CBAM). In contrast, Chequered Plate prices in the German spot market declined in November due to reduced demand from downstream industries and surplus supply. Global manufacturers maintained a higher supply of Nickel. Nornickel increased its global nickel surplus estimate, citing steady production despite lower domestic buying rates. Meanwhile, at the end of 2023, Chequered Plate prices in the German spot market continued to decline due to surplus supply and reduced demand. Rising production costs and decreased demand in manufacturing industries raised concerns, impacting companies like Arvedi Acciai Speciali Terni. The Chequered Plate sector in Germany faced challenges, including the removal of government subsidies for electric vehicles impacting sales. The latest price of SS Chequered Plate (304-5mm) Ex Ruhr in Germany for the last quarter is USD 3269/MT.
