For the Quarter Ending March 2024
North America
In Q1 2024, the North American region experienced a stable pricing environment for Steel Rebar. Several factors influenced market prices during this period. Firstly, the overall demand for Steel Rebar remained steady, with no significant fluctuations in consumption. This stability can be attributed to the consistent performance of downstream industries, such as construction and infrastructure development, which continued to drive the demand for Steel Rebar. Additionally, the availability of raw materials, such as iron ore and steel scrap, remained sufficient, ensuring a balanced supply in the market.
Turning our focus to the United States, the pricing trend remained stable throughout the quarter. Seasonal factors, such as winter weather conditions, had a minimal impact on market dynamics. The correlation between price changes and other market variables, such as demand and production capacity, remained moderate.
In conclusion, the stable pricing environment for Steel Rebar in Q1 2024, both in the North American region and specifically in the United States, indicates a positive market sentiment. The consistent demand and supply balance, along with a moderate correlation between price changes and market variables, contributed to the overall stability in Steel Rebar prices. The quarter-ending price for Steel Rebar (8 mm) CFR Illinois in the USA stood at USD 870/MT.
APAC
The first quarter of 2024 has been challenging for the Steel Rebar market in the APAC region, with prices facing a significant decline. Several factors have influenced market prices, including oversupply, reduced demand from downstream industries, and disruptions in global trade routes. These factors have created a negative pricing environment, leading to a decrease in Steel Rebar prices. Steel rebar consumers have reduced their buying activities, anticipating a decline in prices due to uncertain demand. Market participants are carefully evaluating prospects. Export prices for Chinese steel rebar fell due to reduced raw material expenses, alleviating production pressures on local steel mills. This has resulted in a general downward trend in both raw material and finished steel product prices, driven by excess production compared to demand growth. The slow rebound in domestic demand for steel rebar, possibly influenced by a sluggish real estate sector, contributed to this pattern. Despite heightened steel production due to lower costs, international trading remains subdued as buyers are reluctant to make bids or offer excessively low prices. Compared to the same quarter last year, prices have declined by 23%, indicating the long-term negative sentiment in the market. The quarter-ending price for Steel Rebar (HRB400 - 8 mm) Ex Shanghai in China stands at USD 481/MT, reflecting the current decreasing pricing environment.
Europe
The first quarter of 2024 has been characterized by decreasing prices in the European Steel Rebar market. Several factors have influenced market prices, including subdued demand, reduced inventory levels, and disruptions in trade routes. These factors have created a bearish sentiment in the market, leading to lower prices. The latest quarter-ending price for Steel Rebar in Germany is USD 820/MT FD-Ruhr. This reflects the overall decreasing trend in prices throughout the quarter. The prevailing sentiment across European steel rebar markets remained pessimistic concerning both short and long-term demand and pricing trajectories, with demand staying at a low level. This persistently negative outlook and subdued demand led to limited trading volumes, while producers, facing ongoing profit losses throughout the year, have become reluctant to offer discounts. The market conditions in Germany have been influenced by factors such as subdued demand, limited purchases from buyers, and cautious approach from steel mills. Sectors like automotive and construction have shown slow booking rates, further impacting the demand for Steel Rebar.
For the Quarter Ending December 2023
North America
The North American Steel Rebar market in Q4 2023 witnessed a damping market sentiment with excess supply and declining downstream demand. In October, steel Rebar prices in the US remained relatively low despite an increase in international dollar prices. Transportation constraints due to diminishing water levels in rivers and concerns about a potential United Auto Workers strike impacted shipping costs and Hot Rolled Coil purchases. The revocation of countervailing duty orders on cut-to-length carbon-quality steel Rebar from certain countries led to stable prices in the US domestic market, contributing to a slowdown in demand amid inflation concerns.
By November, steel Rebar prices remained stable, influenced by increased inventory levels, heightened production, and a 0.8% growth in crude steel production compared to the previous weeks. However, a 7% decline in demand from the construction industry prompted steel mills to maintain constant prices. In December, stability persisted in the US spot market, driven by decreased supply and anticipated order fulfillment in the upcoming months.
The last week of December saw stable prices due to reduced trade activity, holiday-related order reductions, disruptions in international trade routes, and decreased consumption in the construction industry amid cold weather conditions and manufacturing slowdowns. The latest settled prices of Steel Rebar (8 mm) CFR Illinois in the USA at the quarter ending December 2023 was USD 1519/MT.
Asia-Pacific
The APAC region's steel industry faced a stable price trend for Steel Rebar prices during the last quarter of 2023. In October, due to a surge in raw material prices, Taiwan's steel mills, including major players like Chung Hung Steel Corporation (CHS) and China Steel Corporation (CSC), raised their prices in response to escalating costs of iron ore and steel scrap globally. Overseas demand, particularly from Europe and the US, remained stagnant due to flat international construction activity. Despite bullish market sentiment initially, rising production costs prompted the mills to sustain their price hikes through October and the beginning of the last quarter. In November, Taiwan's spot market witnessed a notable increase in Steel Rebar prices, driven by limited supply and heightened demand from the automotive and construction sectors. Factors such as restricted imports of Iron Ore, disruptions in the Panama Canal, and a preference for the Suez Canal route led to extended lead times and higher freight charges. However, in December, Steel Rebar prices in the Taiwanese spot market faced challenges due to reduced demand during the winter and holiday seasons. Disruptions in trade routes, caused by drought conditions in the Panama Canal and attacks in the Red Sea, further impacted market sentiment. Uncertain conditions led to a slight decline in overseas demand for feedstock, exacerbated by adverse weather conditions and decreased demand from the construction sector, resulting in a slowdown in manufacturing activity across Taiwan. The latest price of Steel Rebar (8 mm) Ex-Taipei in Taiwan for the last quarter is USD 710/MT.
Europe
The European Steel Rebar market witnessed a stable situation in Q4 2023. In the German steel market, Steel Rebar prices initially rose in October due to restocking, but demand waned in the following weeks amid reduced overall activity in the European steel industry. Prices stabilized as mills and distributors scaled back operations during the October holiday break. The third week of November saw continued stability, with large manufacturers benefiting from government measures addressing energy costs, while small-scale fabricators faced challenges. October witnessed an 8.8% decline in German crude steel production. In December, Steel Rebar costs held steady, influenced by subdued demand, and reduced downstream activity. Market participants expressed optimism for increased orders in January-February, but interest waned in downstream sectors due to trade slowdowns and unfavorable weather. International market uncertainties, including increased shipping risks, contributed to a cautious "wait-and-see" approach among buyers, heightening overall market uncertainty. The Italian manufacturer Acciaierie d’Italia initiated a maintenance shutdown aimed to mitigate production impacts, and a rescheduled meeting among joint venture partners hinted at a more favorable outlook in the next quarter. The latest price of Steel Rebar (8 mm) FD-Rome in Italy in Q4 2023 was USD 873/MT.
For the Quarter Ending September 2023
North America
In the US Steel Rebar market during Q3, various factors influenced pricing trends. Early in the quarter, prices rose slightly due to increased mill offers and reduced trading activity over the July 4th holiday. Stable seasonal demand and lower domestic scrap maintained spot market prices despite expected price hikes. Throughout July and August, steel rebar prices remained stable, with consistent construction activity, but demand didn't rise as anticipated. A slowdown in construction work and downstream inquiries affected prices. The potential for a United Auto Workers strike against automakers added to market uncertainty. By September, US Steel Rebar prices saw decreased demand, driven by reduced interest from the automotive and housing sectors. Housing starts declined in August, potentially reducing construction materials demand. Elevated raw material costs and economic uncertainties made buyers cautious. The market awaited the UAW contract negotiations' outcome, which could impact steel consumption. While prices stayed stable, weakening downstream demand and economic uncertainties posed challenges. In summary, the US Steel Rebar market in Q3 was marked by stable demand, mill offers, and economic uncertainties influencing pricing trends.
Asia-Pacific
In Q3, the Taiwanese steel rebar market saw a decline in prices due to weak demand both locally and globally, leading to reduced purchasing and job cuts. Lower demand for inputs also lowered costs, resulting in price reductions. Output and new business decreased significantly, especially in export markets like Europe, Japan, China, and the US. Supply chains improved in July with shorter lead times due to reduced input demand. This led to lower average input costs and quicker reductions in selling prices over three years. The decline in output, new orders, and export sales was attributed to global economic weaknesses and high client inventory levels, suggesting a weak performance in the third quarter. Steel rebar prices remained stable in mid-Q3 due to a balanced supply-demand outlook. The implementation of a carbon tax in Taiwan was postponed until 2025, targeting 287 high-emission companies and introducing carbon tariffs on carbon-intensive imports. The price of feedstock, such as iron ore and steel scrap, supported steel rebar prices due to rising raw material costs. Despite economic uncertainty, downstream market demand remained healthy, supported by mill price hikes.
Europe
Steel Rebar prices in the German market stayed stagnant in July despite a previous $55/MT drop since May, primarily due to oversupply. Local mills aimed to stabilize prices ahead of scheduled maintenance and uncertain domestic construction demand. The market saw a 1.5% drop in the last week, largely driven by a 1.7% decline in the Consumer Discretionary sector. Scrap market collectors anticipated international price drops. August remained sluggish due to weak construction inquiries and low stocks, with hopes for a rebound in September. French and German markets underperformed compared to Italy and Spain. By mid-September, Steel Rebar prices began to rise with increased construction activity, but the market's direction remained uncertain. Improved end-user demand, particularly in residential construction, was expected, but both producers and distributors had low order books, and buyers lacked confidence. The European steel market faced challenges, including decreased demand, increased flat product imports, and ongoing decarbonization efforts. Russian steel production continued despite government restrictions, impacting the global steel market. The German steel market anticipates potential price increases and reduced production as winter approaches, with domestic manufacturers scaling back production to avoid losses. Buyers remain cautious, awaiting improved market conditions.
For the Quarter Ending June 2023
North America
The price of Steel Rebar showed a mixed trend in the second quarter in the US spot market as the declining economy and reduction in construction activity pushed the Steel Rebar prices downward. In H2 of the second quarter, the US financial market had to face a debt crisis after the downfall of several banks created a declining economic trend. The lack of labor and the declining housing sector led to a reduction in construction activity. The declining economy provoked the buyers to shy away from placing large orders as the US market sentiments were uncertain. The consumption rate returned to a dwindling phase as the infrastructural developments were slowed down as the interest rate increased. The inventory level was on a higher edge as the usage declined, and overseas suppliers from China flooded the global market with their surplus supply at a relatively cheaper rate. This provoked the local mills to decrease their offer price to sustain the competitive global market. At the end of Q2, the price of Steel Rebar gained hope after the extension of the debt crisis deal for further two years.
Asia-Pacific
In the Chinese spot market, the price of Steel Rebar showed an inclining price trend as the feedstock iron ore and coke prices subdued in Q2. The price of Steel rebar declined amid weak construction activity as the monsoon arrival affected construction in the East China region. The construction activity plunged as the weather and increasing feedstock concrete and cement price put downward pressure on the downstream construction industry. The demand from overseas countries declined as the Indian, US, and European markets put anti-dumping duties on imported steel from Chinese manufacturers. Amid weak market sentiment, several plants shifted to maintenance shutdown and production cuts to lower the supply-demand gap. The inventory level remained on a higher edge as the demand and consumption decreased. This provoked the local suppliers to offer surplus quantity at a lower offer price. Meanwhile, the declining economic condition in China and in the overseas market across USA and Europe led to the declining usage of Steel rebar and increased the supply level in the Chinese spot market.
Europe
The Steel Rebar price showed a mixed trend in the German spot market amid weakening economic conditions along with the declining construction rate. The downstream construction industry inched downward as the labor crisis and Economic degradation put downward pressure on the price of Steel Rebar. The construction workers union has gone into strikes and protests in front of Belgium headquarters to improve worker safety measures along with proper financial support. The lack of manpower halted the construction activity across the German spot market. The rising inflation rate caused a plunging demand for households and led to housing crises across major European countries. The uncertain economic factors provoked the buyers to shy away from placing large orders as market sentiments got bearish. The inventory level remained on a higher edge as overseas suppliers from China have flooded the global market with their surplus supply at a relatively cheaper rate. This provoked the local mills to decrease their offer price to sustain the competitive global market.
For the Quarter Ending March 2023
North America
In Q1 2023, Steel Rebar prices showcased an upward momentum in the US market due to the recovery of the downstream construction sector. Mills were quiet in January, hoping for better domestic scrap market conditions. In mid-Q1, Steel Rebar prices decoupled from raw materials, but producers had little incentive to raise prices despite the possibility of higher production costs. Economic uncertainty, rising interest rates, and slow construction demand continued to hinder the industry, with limited bidding activity. Despite the anticipation of relief from the Infrastructure Investment and Jobs Act, buyers sought lower-priced orders before rising scrap prices impacted mill pricing. Local US market sentiment improved in March, with lower service center stocks and high raw material prices contributing to the rise in completed steel prices. Nucor, Commercial Metals Company, and Gerdau's price hike in March boosted spot pricing, with domestic demand remaining strong due to seasonal construction and funding from the Infrastructure Investment and Jobs Act. Import bookings remained stagnant, with the latest arrivals expected in early summer. Consequently, Steel Rebar (8mm) prices for Ex-US Midwest and CFR Illinois settled at USD 942/MT and USD 890/MT, respectively.
Asia Pacific
In Q1 2023, the Chinese Steel Rebar market experienced an upswing due to the strengthening downstream construction market and fluctuations in raw material costs. Domestic steel prices rose after the Chinese New Year break as steel producers aimed to recoup their previous losses and expected a short-term demand recovery. However, physical market transactions were limited in late January as many traders and end-users had not returned to the market for procurement. In February, firm raw material prices kept Steel Rebar prices higher, while domestic Electric Arc Furnace steel mill operating rates increased in response to rising spot prices. In March, Steel Rebar prices maintained higher prices due to subdued raw material costs and downstream construction inquiries amid financial turmoil in overseas markets. Steel mills' compressed profits impacted production, and the inventory of steel mills continued to decline. As a result, Steel Rebar (HRB400 - 8 mm) prices for Ex Shanghai and FOB Shanghai settled at USD 625/MT and USD 658/MT.
Europe
During the first quarter of 2023, the European Steel Rebar market saw an increase in prices due to higher downstream construction inquiries and producers' push for price hikes. The private residential construction sector ordered smaller quantities of steel and delayed projects due to persistently high steel, cement, and timber prices, causing a slower month in January. Domestic prices remained relatively stable since the end of January, with a few offers received from domestic producers quoting higher prices than other suppliers. In February, Steel rebar mills were reluctant to lower their prices any further, and buyers completed their restocking within the first ten days of the month. Steel scrap prices increased in Germany for March, and mills have begun to raise their offers accordingly. However, few buyers accepted the higher prices, and demand is decreasing. As a result, Steel Rebar prices settled at USD 900/MT and USD 945/MT for Ex Ruhr and FOB Hamburg due to low demand.
For the Quarter Ending December 2022
North America
During the fourth quarter, the price of Steel Rebar remained unchanged. Market participants witnessed slow orders as construction companies completed their backlogs and less competitive foreign prices. Concerns were mounting as the market became more pessimistic as thanksgiving and Christmas approached in the United States, and most service centers had reported a decline in downstream demand. To keep up with reducing import prices, Steel rebar makers lowered the prices, which were also driven down by both a dull US demand for foreign capacity in 2023 and decreasing raw material costs. The outlook for domestic demand was cautiously positive, according to market sources, and was driven by increasing infrastructure investment. However, the festive holidays and snowstorms hampered the supply chain towards the quarter's end.
Asia-Pacific
The prices of Steel Rebar port showcased mixed sentiments throughout the fourth quarter as the raw material prices after declining. Some raw materials recovered at a low level upstream, and the price of scrap somewhat recovered towards the quarter end. Due to declining inventory levels, Steel Rebar prices increased in the Chinese market as raised infection cases and staff shortages hampered the supply chain. On the upstream side, coke stabilized, and the cost of scrap steel climbed and fell in tandem, maintaining stability overall. Demand decreased month after month while the seasonal impact grew in the regional market. However, during the customary off-season, demand was low. In December, the effects of the off-season become more pronounced. Profit reductions caused a further decrease in steel production.
Europe
Overall market prices of Steel Rebar in the European market followed the declining trend on the back of weak demand and sufficient inventories to cater to the domestic market. Leading steel mills around the nation also dramatically changed their factory prices, which led to a spike in spot prices for domestic companies. Additionally, the raw material trend was stable, offering spot items in the short run substantial support. The European market had high inventories as consumers competed with manufacturers. The pricing stayed within the stable range in the mid-quarter. To balance demand and supply, steelmakers went under early blockages for the Christmas holidays. Manufacturers of steel rebar plan to halt output for maintenance before starting it up again in the upcoming quarter.
For The Quarter Ending September 2022
North America
During the third quarter of 2022, Steel Rebar prices witnessed a fluctuating price trend in the North American market. Steel rebar prices in the United States continued to fall in July and August 2022 due to a demand-supply imbalance, despite an inflow of imports and steadily falling raw material prices. According to suppliers, US Steel Rebar prices remained broadly stable in September as import prices increased as the construction industry remained active. Furthermore, it was reported that overseas producers faced higher costs. Energy prices in Europe and Turkey have risen due to a reduction in the Russian natural gas supply. Steel rebar prices have fallen due to service centers delaying purchases due to weak consumer demand, which has been exacerbated by labor and part shortages. Fears that the United States is already in or on the verge of a recession have also reduced purchases. As a ripple effect, the Steel Rebar (8 mm) prices for Ex-US Midwest (USA) settled at USD 1014/MT.
Asia Pacific
Steel Rebar prices in the Indian market fell by more than 10% during the third quarter of 2022 owing to low buying interest and limited spot transactions. According to market participants, Steel Rebar prices in India appear to have bottomed out, and further declines are unlikely while emerging green shoots of demand are expected to support costs in the year's second half. The 15% export tax on steel products imposed in late May, combined with low global demand, has kept shipments in check, while imports have increased in response to lower-cost offers from Russia and South Korea. Steel rebar prices fell due to a drop in raw material prices, such as sponge iron and steel billets, as well as a lack of buying inquiries despite high discounts. Furthermore, domestic trade was limited, with falling prices in the northern region. In turn, limited spot trades and softened offers were observed in key locations. Participants are divided about the demand outlook. As a result, they are waiting to take positions for future bookings. As a ripple effect, the Steel Rebar (8 mm) prices for Ex Delhi and Ex Mumbai settled at INR 57650/MT and INR 55750/MT.
Europe
In the European market, Steel Rebar prices witnessed a downward price trend in the third quarter of 2022 amidst the limited transaction in the regional market. As per market players, Steel Rebar prices remained depressed in the European market because of weak demand, most awaiting a wait-n-watch policy, low transactions, surging energy costs, and seasonal maintenance drive. After the August holiday break, some private residential construction companies have not re-opened and are putting new projects and building sites on hold. Some construction contractors prioritize the most profitable building sites and wait for prices to go down for others. Public projects are also slowing because of the sharp increases in all construction raw materials such as steel, timber, and cement. A steel buyer noticed that when rebar prices decreased in the past, clients resumed ordering. Demand is still there, but new price increases continue to slow the market. As a ripple effect, the Steel Rebar (HRB400 - 8 mm) prices for Ex Shanghai settled at USD 1020/MT.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, North America's US Steel Rebar market experienced mixed sentiments, with prices exhibiting minor fluctuations, steady demand, and imports posing a few issues. Although Steel Rebar distributors and traders were more optimistic about stockpiles than in the past, supply remained limited, especially in Florida. Mills has announced steel rebar pricing increases to keep up with imports and freight rate increases, as even imports face increased port congestion and transportation charges from the ports. Domestic producers also have little incentive to accept lower prices. Although import prices have continued to fall, large purchases have not been made. Market participants say production and new orders have slowed while work backlogs have grown. Meanwhile, cost inflation has accelerated, forcing businesses to pass on higher costs to customers through near-record increases in production rates. Due to the ripple effect, steel Rebar prices for Ex-US Midwest settled at USD 1105/MT.
Asia Pacific
During the second quarter of 2022, the Steel Rebar prices witnessed a slightly declining trend in the Asian market owing to several factors, such as increasing geopolitical tension, supply-chain disruptions, rising inflationary pressures, and COVID-19. As per Chinese market players, Steel Rebar prices saw limited growth, with movements and sentiments affected by rising COVID-19 cases. The Russia-Ukraine war and its many-sided repercussions, particularly on logistics and raw materials, coupled with the significantly rising COVID-19 cases, have two-folded the impact on supply and demand-side movements. Additionally, India increased export duties on bars by 15%, effective May 22, to mitigate the sharp increase in domestic rebar prices. As per market players, export mills have diverted products overseas to domestic markets, resulting in increased supply. The Shanghai administration has successively approved the resumption of some critical projects that involve construction activity. As a ripple effect, the Steel Rebar (HRB400-8 mm) prices for Ex Shanghai settled at USD 713/MT.
Europe
Russian Steel Rebar prices fell in the second quarter of 2022 due to low demand and limited transactions in the domestic market. According to market participants, weak domestic demand amid rising concerns about the country's economic development and mills' limited export due to trade sanctions exacerbated the impact on Steel Rebar demand. Furthermore, few of Russia's overseas buyers are willing to trade due to the risk of sanctions or banks refusing to finance transactions, sluggish terminal demand, and rising inflationary pressures. Steel Rebar prices fell dramatically in the United Kingdom, owing primarily to slower production growth, weaker domestic demand, limited export orders, rising cost pressures, and the Ukraine war. Furthermore, lower raw materials prices, especially nickel costs, and reduced consumption from mills have further provoked Steel Rebar (8 mm) prices for Ex Sheffield (UK (United Kingdom)) to settle at USD 1223/MT.
For the Quarter Ending March 2022
North America
In North America, supply chain disruption caused inflation in raw materials prices of steel. Moreover, Major steel enterprises are consistently trying to reduce raw materials prices and focusing on minimizing the active backlogs of incomplete work. However, local market players have already achieved their needs for May and waiting for the bidding to begin in May. As transportation and delays threatened to interrupt operations, severe supply limitations presented substantial concerns. Additionally, higher freight charges forced higher import costs for steel in North America. Due to the soaring steel prices in North America, Steel Rebar prices also inflated. At the end of the first quarter of 2022, Steel Rebar prices for Ex-US Midwest settled at USD 1120 per tonne.
Asia pacific
Due to steel price inflation, the Asian Steel Rebar market price flourished in the first quarter of 2022. Supply disruptions fuel the rise in steel raw material prices due to the ongoing conflict between Russia and Ukraine. However, in China, Steel prices soared to nearly USD 817 per tonne and Steel Rebar prices to USD 796 per tonne, the highest amount since October last year, as fears of supply shortages arose following a lockdown in Tangshan. Transportation issues created by coronavirus-related restrictions in China's most prominent factories generated raw material shortages in most companies. Furthermore, increased energy costs resulting from the conflict have forced domestic companies to boost prices for massive Steel sections. However, due to rising coking coal costs, Indian steelmakers have increased Steel Rebar prices by USD 18-30 per tonne in mid-quarter. However, Steel Rebar prices in most markets plunged INR 2,200/t at the end of Q1. The price of Steel Rebar for Ex Mumbai settled at USD 815 per tonne.
Europe
During the first quarter of 2022, Steel Rebar prices in Europe jumped to USD 900 per tonne. This soaring was primarily due to geopolitical tensions between Eastern European nations. The extended hostilities between Russia and Ukraine resulted in higher prices and limited steel supply, fuelled by spikes in energy prices and supply shortages. Additionally, European Steel market players continued to hold back bookings on Europe-origin HRC due to competitive import offers and full credit of lines. During the end of the first quarter of 2022, Southern European Steel Rebar prices hiked by USD 30-150 per tonne, settling the Steel Rebar price for Ex-Moscow (Russia) at USD 900 per tonne.
