For the Quarter Ending March 2024
North America
The Steel Plate market in the North America region experienced a challenging first quarter of 2024, with prices declining steadily. Several factors contributed to this downward trend. There was an overall decrease in demand from various industries, including construction and automotive sectors. This decline in demand can be attributed to economic uncertainties and reduced consumer spending. Additionally, disruptions in trade routes, such as the Red Sea and Suez Canal, further impacted market prices.
The USA witnessed significant price changes during this period. The overall trend for Steel Plate prices in the country was negative, Manufacturers expressed concerns about imports amidst the already subdued domestic market demand, with the prevalence of large, discounted index agreements given to the large service centres contributing to a slight decline in prices. The sentiment among some market participants indicates a belief that imports will continue to exert downward pressure on prices until there is a substantial demand recovery.
The quarter-ending price for Steel Plate (20 mm) Ex Works Texas in the USA stood at USD 1277/MT, indicating a continued downward trend. Overall, the pricing environment for Steel Plate in the North America region has been negative, with prices consistently decreasing throughout the quarter. This can be attributed to factors such as low demand, trade disruptions, and economic uncertainties.
APAC
The first quarter of 2024 has been a challenging period for Steel Plate pricing in the APAC region. There have been several factors that influenced market prices during this quarter. One significant factor is the overall weak demand from downstream industries, such as construction and automotive sectors. This subdued demand has led to an oversupply of Steel Plate, resulting in a bearish pricing environment. Another factor that has impacted prices is disruptions in international trade routes. The attack by Houthi rebels in the Red Sea and reduced water levels in the Panama Canal have caused trade disruptions, leading to longer lead times and increased freight charges. These disruptions have further contributed to the downward price trend. The pricing dynamics in Japan have seen the maximum price changes. The Japanese spot market witnessed a significant decline in Steel Plate prices during this quarter. The surplus supply in domestic warehouses and reduced demand from both local and overseas downstream industries have resulted in lower prices. Harsh winter conditions in Japan also affected demand from the construction sector. Overall, the pricing environment for Steel Plate in the APAC region has been negative, with prices experiencing a downward trend. There has been a correlation between weak demand, oversupply, and trade disruptions, leading to lower prices. The percentage change from the same quarter last year and the previous quarter in 2024 reflects this negative pricing trend. As of the end of the quarter, the price of Mild Steel (JIS 3101-10 mm) Plate Ex Osaka in Japan was USD 751/MT.
Europe
The Steel Plate market in Europe experienced a challenging first quarter of 2024, with prices witnessing a significant decrease. Several factors influenced the market, leading to the negative pricing environment. The ongoing economic struggles, coupled with subdued demand, played a major role in the declining prices. The lack of confidence in the German housebuilding sector and the overall low economic activities further contributed to the downward pressure on prices. Germany saw the maximum price changes in the Steel Plate market. The overall trend in Germany reflected the decreasing sentiment, with prices experiencing a consistent decline throughout the quarter. Seasonality also had an impact, with the winter weather conditions affecting demand and leading to lower prices. Additionally, changes in political leadership and financial support from the EU affected market dynamics, particularly in Central and Eastern Europe. Moreover, global scrap prices fluctuated, with different regions experiencing varied trends, further contributing to market uncertainties. The quarter-ending price for Steel Plate (16 mm) FD-Ruhr in Germany stood at USD 910/MT, reflecting the overall negative pricing environment in the market. The market conditions remained challenging, with prices consistently decreasing throughout the quarter.
For the Quarter Ending December 2023
North America
The North American steel plate market in Q4 of 2023 showed a plunging trend, driven by over-supply and lowering downstream demand. In early October, despite a global increase in the international dollar price, steel plate prices in the US remained low due to transportation constraints caused by diminishing water levels in rivers and concerns about a potential United Auto Workers strike affecting Hot Rolled Coil purchases. The revocation of countervailing duty orders on steel plates from India, Indonesia, and South Korea by the US International Trade Commission contributed to stable prices in the domestic market, slowing demand amid inflation worries.
In mid-October, steel plate prices declined due to reduced demand from the automotive and construction sectors, coupled with rising input costs and increased inventory levels. The first week of November saw a slight increase in US spot market steel plate prices, driven by Chinese stimulus measures, global market trends, and macroeconomic factors. However, in the third week of November, prices dropped due to rising inventory levels and increased production.
December exhibited price stability, attributed to reduced supply, extended lead times, and optimism fueled by major manufacturers' announcements of price increases. The static prices were also influenced by lower trade rates, harsh weather conditions, and decreased downstream construction industry consumption. The latest price of steel plate (20 mm) ex works in Texas in the USA for Q4 of 2023 was USD 1519/MT.
Asia-Pacific
The APAC regions witnessed a decline in Steel Plate prices in the fourth quarter. Firstly, The Japanese Steel Plate spot market experienced a notable surge in prices initially, fueled by increased demand from the transportation and construction sectors. Russia's shift from Chinese to Japanese Steel Plate mills played a role, driven by the need for stable feedstock crude steel for a Serbian mill. However, the market dynamics changed in November, witnessing a decline in Steel Plate prices due to a boost in domestic production, leading to higher inventory levels. Overseas demand dwindled, with the US and Mexican governments seeking import reductions, and disruptions in the Red Sea and the Panama Canal further impacted trade. The Japanese market faced an oversupply as downstream industries, both local and overseas, reduced consumption. Severe winter conditions in Japan, coupled with global shifts in the automotive sector post-COP28, contributed to a modest decline in demand. Consumer concerns about rebel attacks in the Red Sea further subdued orders in downstream industries like paper, pulp, paint, and glass manufacturing. The latest price for Mild Steel (JIS 3101-10 mm) Plate Ex Osaka in Japan is USD 859/MT.
Europe
The Steel Plate market in the Europe region experienced stability in Q4 2023, primarily due to a slowdown in demand from downstream automotive and construction sectors. In the German steel market, steel plate prices stabilized in October as mills and distributors reduced operations during the holiday break. Initially, prices rose due to restocking, but demand tapered off with reduced activity in the European steel industry. Prices are now stable, though there might be delivery delays due to impending mill closures. Pessimism exists for October, with subdued demand and concerns of a price decline in the following month. Steel plate orders have a lead time of 1.5 to 2 months, and local producers report low inventory. In November, the price remained steady despite lower purchasing activity, attributed to public holidays and high warehouse supply. Automotive demand decreased due to overseas competition and the European Federal Reserve's indication of a potential interest rate increase. In December, the cost remained consistent, but downstream industries saw lower activity. Interest waned in construction, infrastructure, and machinery sectors, influenced by trade slowdowns, adverse weather, and escalating prices. International market uncertainties, including heightened risks in shipping routes, led buyers to adopt a cautious "wait-and-watch" approach, contributing to market uncertainty. The latest price of Steel Plate (16 mm) FD-Ruhr in Germany for Q4 2023 was USD 955/MT.
For the Quarter Ending September 2023
North America
In Q3, the US Steel Plate prices remained stable due to economic factors like an expected increase in interest rates, which led to reduced demand from buyers. Iron ore production decreased, and the construction sector's demand was flat, while the automotive sector showed growth. The steel plate production remained steady, with a minor disruption in the iron ore supply. The automotive sector was promising, with growing electric vehicle sales, but construction sector demand remained flat. In July, steel plate prices increased due to higher demand from the construction and automotive sectors, along with reduced local inventory levels. However, in the following weeks, prices remained lower due to declining demand. Downstream construction and automobile industries struggled, influenced by factors like a potential United Auto Workers strike and concerns about inflation. As August progressed, prices remained stable despite a stronger dollar and transportation restrictions caused by declining river levels. In September, steel plate prices fell due to reduced demand from the automotive industry, strikes, and a drop-in construction activity. Overall, the US steel plate spot market experienced stability driven by labor strikes in the automotive sector, reduced demand, and inflation concerns.
Asia-Pacific
In the third quarter of 2023, steel plate prices in Japan experienced a declining trend due to various factors. Initially, steel plate prices declined as domestic inventories increased, driven by rising raw material input costs and a drop in iron ore prices in the spot market. Collapsing coal prices further weakened cost support. The downstream steel production increased, contributing to a surplus in crude steel supply. Additionally, competition from China's electric car industry impacted the domestic auto sector. A quarter-point increase in the federal inflation rate slowed purchasing activity, and American automakers faced stiff competition. In August, steel plate prices remained stable as iron ore prices continued to fall due to increased production in foreign mines. A surge in automobile sales boosted the steel plate market, but typhoon disruptions led to higher freight charges. The local Federal Reserve rate hike indicated a downward economic trend. Steel plate production remained steady, despite lower downstream consumption, while overseas iron ore imports increased. The can and casing industries faced subdued demand, but the automotive sector showed growth, with companies like Volvo and Tesla expanding production in Europe, expected to drive higher steel plate demand.
Europe
The German steel plate market has witnessed a reduction in prices due to several factors in the third quarter of 2023. Initially, in June, prices were stable as reduced production and weak demand from the construction and automotive sectors were influenced by declining automobile demand and competition from Tesla and Chinese car manufacturers. The possibility of an interest rate hike in Europe further deterred buyers from making large orders. Despite some interruptions in iron ore supply, steel plate production maintained its pace in the subsequent weeks. The automotive industry remained pessimistic, leading to reduced consumption. Market sentiment remained uncertain in July and August as inventory levels increased, and buyers placed smaller orders, both domestically and internationally. In September, prices consistently declined due to reduced demand from the construction and housing industry, increased production, and rising interest rates. Safeguard measures were imposed by the European Union to protect the domestic steel market, and subsidies were provided to ensure fair competition. Concerns arose about a potential shutdown of the Italian steel mill Acciaierie d’Italia. In summary, the German steel plate market grappled with fluctuating demand, increased competition, interest rate fluctuations, and safeguard measures, resulting in unstable price trends.
For the Quarter Ending June 2023
North America
The price of Steel plate overall declined in the US spot market amid the declining economic situation in the country, along with a higher inventory level in the second quarter of June 2023. The initial phase of the second quarter showed slight hope for the Steel Plate market as the prices were high in April. The production cut was observed in April, as the joint company of US Nucor and Japanese Yamato Kogyu – Nucor Yamato was shut down between 9 to 16th April. The Nucor mill did the increase in the price of Steel Plate as the lead time decreased from 8-10 hours to 8-9 hours. In the H2 of the second quarter, the prices went downward. The rising economic uncertainties caused by the debt crisis due to the fall of major US banks made the US market sentiment pessimistic. Consequently, the downstream automobile industry's demand declined, resulting in the shutdown of three major automotive companies like, Nissan, Kia, and Sedan in ending June to reduce the supply-demand gap. The reduced consumption of Steel Plates in the US downstream automobile and construction industry led to an increase in inventory level. The feedstock Iron ore prices also showed a decrease in price as the extraction rate increased in the overseas mines in Australia and Indonesia leading to surplus supply at a much cheaper rate in the spot market. As a result, the local manufacturers were provoked to offer discounts even on smaller orders as the market got sluggish.
Asia-pacific
The price of Steel Plates showed a continuous declining trend throughout the second Quarter in the Japanese spot market. At the start of the second quarter, the production rate was on the major steel plants performing at a faster pace. Meanwhile, the downstream construction sector remained negative throughout Q2 due to uncertain global economic conditions. The Japanese automobile industry also faced a sluggish market sentiment as the rising inflation rate affected demand from the overseas US and European markets. The steel scrap prices were also declining, which put downward pressure on the local steel mills. In H2 of the second quarter, most of the major steel plants underwent production cuts for infrastructural upgradations, such as the JFE Steel corporation planned to produce green steel under the 'JGreeX' project to provide a push toward the decarburization effort of the Japanese government. The production cut resulted in a surplus supply in the local inventory that provoked buyers to shy away from placing large orders, and the market became bearish.
Europe
In the second quarter, the Italian Steel Plate market showed an overall declining trend amid a price increase in the initial period of April, and later, the declining price was persistent in the H2. The prices went high due to increased production costs amid rising energy costs and feedstock prices. The downstream demand from the automobile industry remained stable, which helped in raising the price of Steel Plates in the Italian spot market. In the second half, the market situation changed as the global economic condition was deprived, leading to a rising inflation rate across Italy and other European nations. The steel production rate was high amid weak demand from the downstream construction sector resulting in high inventory levels. This provoked the buyers to offer Steel Plates at a much-reduced price to sustain in the Competitive global market. The overseas steel suppliers, such as China, was offering a surplus supply of Steel Plate in the Italian and all major European markets, which put downward pressure on the Steel Plate price produced by the local Italian Mills. The Italian government-imposed tariff on Russian-origin steel as that was increasing the local inventory levels.
For the Quarter Ending March 2023
North America
Steel Plate prices in the North American region upsurged during the first quarter of 2023. Initially, demand picked up moderately, reflecting lower stock levels following the holiday season. Service centers reported increased customer inquiries and shipments, but few were interested in stocking up on steel products, especially with lead times not extending any further than they had. In mid-Q1, the domestic steelmakers kept prices elevated owing to the rising raw material costs. As per the buyer, major players were raising costs to compete with the import offers. In March, mills continued to raise spot market offers, but demand remained steady as buyers continued to review their order books. Lead times increased to 7-8 weeks from 6-7 weeks. Confirmed orders were agreed upon and protected until the order was completed and shipped. Therefore, prices of the Steel plate for Ex-Work Texas were assessed at USD 1702/MT on March 31.
Asia-Pacific
In the first quarter of 2023, the Steel Plate prices showcased an upward momentum in the Asia- Pacific region. In January, demand picked up with a rise in downstream inquiries on the back of stabilized global inflation and China's reopening. However, China's production cuts and the Russia-Ukraine war resulted in tighter supply. Following the Spring Festival holiday, the steel market strengthened more in February, and the steel price continued to rise, signaling a promising start. Steel mills stopped production for more maintenance due to high costs, and output continued to fall, which was good for steel prices. With the arrival of the traditional peak season in March, domestic production was increased due to tight spot supply. Also, the costs of iron ore and coking coal rose due to inventory replenishment and Beijing's tightening control over crude steel production. Steel mills were under a lot of cost pressure, so the ex-factory price was raised. Therefore, the price of the Steel plate for Ex Shanghai was assessed at USD 648/MT on March 31.
Europe
In the European region, the price trend of Steel Plate followed an upward price trajectory during the first quarter of 2023. The hikes in Steel Plate prices were due to increasing prices of the slab, improved demand, and short supply due to longer plate delivery times. Major manufacturers claimed that big buyers who had avoided restocking in December began to place orders in this quarter. The anticipated rise in import slab prices from Asia following the Lunar New Year holidays in China, as well as good order books at European plate producers, also contributed to the market's bullishness. Sales volumes picked up significantly due to limited inventory and higher downstream demand, and buyers were willing to pay higher prices. Some automotive steel demand revival had also contributed to the upbeat mood. Therefore, the price of the Steel plate for Ex Ruhr was assessed at USD 1165/MT on March 31.
For the Quarter Ending December 2022
North America
In the final quarter of 2022, the Steel Plate prices plunged in the US market owing to the limited inquiries from the downstream segment. In October, major manufacturers were curtailing production activity to fill the supply-demand gap. The Mississippi River's water level had dropped so low that barges had become stuck, resulting in costly dredging and traffic congestion. According to manufacturers, Steel Plate fell as the market remains concerned about logistics. As shippers cannot load as much weight on a barge at low water levels, barges became much more expensive, causing shipping delays. Towards the quarter's end, the inventory level dropped, and Steel Plate manufacturers started raising prices, anticipating a higher demand outlook before the Christmas holiday. Buyers had opted wait-and-watch outlook as the market slowed ahead of the holidays. Thus, Steel Plate (20 mm) prices for Ex Works Texas (USA) settled at USD 1605/MT.
Asia Pacific
In the Chinese market, the Steel Plate prices showcased a declining trend in the final quarter owing to the limited downstream demand amidst higher inventory levels. Steel mills lowered their output in October, and steel transactions increased. Measures for preventing and controlling epidemics were tightened in some places, and transportation and logistics were stopped. Production capacity was high, and significant supply limitations were observed. However, because of the high cost of raw materials, the steel plant quickly experienced a loss. Market participants claim that domestic COVID regulations and the complicated international scenario harm the revival of steel demand. Fewer Chinese steel mills intend to stock up on steel plates before the Chinese New Year. Thus, Mild Steel (Q235B-10 mm) Plate prices for Ex Shanghai (China) settled at USD 554/MT.
Europe
Towards the closure of Q4, the Steel Plate prices edged in the downward direction amidst a higher inventory level and stable demand outlook. Steel plate prices remained low in October as a result of strong demand and the availability of affordable slabs. Suppliers claimed that they were utilizing more expensive slabs since any savings from buying cheaper slabs would be outweighed by increasing energy prices in Europe. However, trading activity in the area remained minimal, with the majority of the tonnages exchanged being minor. Instead of investing in more capacity, buyers would rather sell off their depreciating stock. After reserving the necessary volumes in December, large purchasers fled the market, which was already slowing due to the impending Christmas holidays. Thus, the discussions of Steel Plate (16 mm) prices for Ex Ruhr settled at USD 963/MT.
For the Quarter Ending September 2022
North America
In Q3 2022, Steel Plate prices followed the downfall trend in the North American market amid rising signs of a recession and weakening manufacturing indicators. Throughout the quarter, the manufacturing units faced a larger demand-supply gap between the HRC and plate, leading to a price drop for Steel Plate. Steel plate prices kept declining, as steel manufacturing firm Nucor reduced its plate prices in the mid-quarter. In addition, lead times increased from 3-5 weeks to 5-6 weeks. Many buyers refuse to make purchases that would increase their inventories, preferring to keep stocks tight rather than take risks in an uncertain market. In the USA, the prices of Steel plates were USD 1884 per MT Ex-works Texas.
Asia Pacific
During the third quarter of 2022, Steel Plate prices witnessed a declining price trend in the Asian market. According to market participants, global steel prices remained under pressure from various sources in the third quarter of 2022, including the Russia-Ukraine conflict and its numerous difficulties, as well as the impact of COVID-19 cases in China on overall steel demand. Lower exports contribute to inventory build-up, forcing steel manufacturers to halt production slightly in the third quarter. Prices thus remained southbound in Q3 2022, with participants taking a wait-and-see approach, waiting for the price slide to stabilize before returning to the market. Towards the quarter's end, the prices of Steel Plates in China were USD 3566 per MT, FOB Tianjin.
Europe
In the European market, Steel Plate prices witnessed a declining trend in the third quarter of 2022 amidst Europe's ongoing inflationary pressures and weak consumption. Germany faced higher inflationary pressure, and local Steel Plate producers are also under cost pressure, pushing the stainless-steel prices. Furthermore, western sanctions did not have the desired effect on the Russian steel industry in the third quarter. However, Russian steelmakers are forced to seek out newer markets and logistics routes to deliver their steel products and raw materials. Towards the end of the third quarter, the prices of Steel Plates in Germany were USD 1155 per MT Ex Ruhr.
For the Quarter Ending June 2022
North America
Steel Plate prices witnessed mixed sentiments in the North American market during the second quarter of 2022. However, since Russia invaded Ukraine, steel prices have significantly rebounded due to supply concerns and an increase in lead times. Steel prices rose sharply as the war threatened supplies from the two major producing countries. Due to supply chain disruptions, the conflict resulted in a reduction in steel input costs. However, after surging around mid-April, the rally in Steel Plate prices has slowed as prices have begun to fall. Prices have dropped by more than 20% since their peak in April. Furthermore, mills are negotiating lower prices for new orders. Steel prices are under pressure in the short term due to these factors and fears of a recession. Nonetheless, strong demand in critical end-user markets bodes well for the steel industry. Despite the semiconductor crunch, steel producers expect continued healthy demand in the automotive market. Order activity in the non-residential construction market is also vigorous, highlighting the industry's underlying strength.
Asia Pacific
In the Asian market, steel plate prices experienced mixed market sentiment. On the other hand, Steel Plate prices skyrocketed in April and May due to rising raw material and transportation costs. Japanese steelmakers have been working hard to shift production overseas to their home market. The decision was influenced by the rapidly falling yen, global supply-chain constraints, geopolitical threats, and shifting wage patterns. According to market participants, a shortage of semiconductors has dampened steel demand in the automobile industry. Furthermore, Nippon Steel raised the prices of Steel Plates used in construction materials and pushed for additional price increases, escalating inflationary pressures in a country where the automobile industry is already dealing with rising costs. Prices for steel plates fell in June due to lower demand, a bearish long steel segment, and a lack of firm offers from overseas buyers. Mild Steel (JIS 3101-10 mm) plate prices for Ex Osaka settled at USD 1005/MT as a ripple effect.
Europe
In the European market, the Steel Plate prices witnessed a mixed trend during the second quarter of 2022, as the impact of sanctions and rising prices reduced customer purchasing power. Meanwhile, raw material price inflation accelerated due to an unfavorable exchange rate and material shortages. As per market players, the drop comes as Europe's economy slows, rising commodity prices and inflation denting consumption across the continent. After the war sparked concern about a disruption in steel exports from Russia and Ukraine, service centers and factories rebuilt stockpiles, reducing the need for consumers to buy products at historically high prices. Some participants cite that material delivery delays held up the processing of incoming new orders in May and June, mainly to the effect of sanctions, and with the backlog, work decreased only fractionally. Meanwhile, output continued to decline amid a steep further fall in exports and shortages of raw materials.
