For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Steel Wire Rod market in North America encountered various obstacles that had an impact on prices. Global supply chain issues, such as port congestion and shipping delays, led to a decrease in demand for Steel Wire Rods. Additionally, the rising costs of raw materials contributed to fluctuations in prices. Furthermore, ongoing trade disturbances between major economies affected market sentiment, resulting in a pessimistic outlook.
In the United States, the Steel Wire Rod market experienced moderate demand, particularly with reduced consumption in the automotive and construction industries. Despite this, the market sentiment remained stable, and there was a moderate supply.
However, due to lower consumption rates, there was an increase in the availability of Steel Wire Rods. Compared to the same quarter of the previous year. Wire Rod (A36-8 mm) Ex Texas was priced at USD 1395/MT during this quarter. To summarize, the Steel Wire Rod market in North America encountered several challenges during the first quarter of 2024. These challenges led to a bearish outlook and price fluctuations.
APAC
During quarter 1 of 2024, the Steel Wire Rod market in the APAC region experienced various challenges and trends, the demand for Steel Wire Rods remained low in the construction and automotive sectors in the region. This sustained demand helped stabilize prices to some extent. However, market participants approached the situation cautiously. The prices of the Steel Wire Rod have slightly declined trend observed over the last week due to the weak downstream demand and high inventory level impacting the final prices. Demand will be relatively slow in the near term. delayed resumption of construction works due to adverse weather conditions and end-users halting operations resulted in reduced logistics and downstream demand. The absence of robust stimulus measures and the lacklustre performance of China's real estate market have fuelled pessimism. The largest producer and consumer of Steel Wire Rods in the region, the market situation remained relatively weak. High supply and low demand, combined with a hesitant approach from market participants, led to limited profits for steel mills and price stability. In conclusion, the Steel Wire Rod market in the APAC region during quarter 1 of 2024 was still affected by supply chain disruptions. The latest price of Wire Rod (Q235-8 mm) Ex Shanghai in China for the current quarter is USD 561/MT.
Europe
The European Steel Wire Rod market in Q1 of 2024 encountered various factors that influenced pricing and demand. One prominent factor was the disruption in trade routes, which led to a surge in freight charges and limited availability of Steel Wire Rods. Multiple shutdowns in trade routes caused significant disruptions, further exacerbating the situation. Germany emerged as a slight increase market with moderate supply and demand levels. The construction and infrastructure sectors played a crucial role in driving demand for Steel Wire Rods in the country. Furthermore, initiatives promoted green energy sustained demand for steel products. Although mills resumed production, high demand resulted in decreased inventory levels and caused price fluctuations. Overall, the Steel Wire Rod market in March, contributing to Steel wire rod prices settling at USD 711/MT in FD-Ruhr (Germany), including disruptions in trade routes and weak demand from major sectors, leading to a decline in prices. The market witnessed multiple shutdowns in trade routes, resulting in increased freight charges. Nonetheless, Germany demonstrated market stability with balanced supply and demand levels. The demand from construction, infrastructure, and green energy sectors contributed to high demand for steel products.
For the Quarter Ending December 2023
North America
The Q4 2023 Steel Wire Rod pricing declined significantly in the North American region, impacted by various factors. Firstly, In October, despite a global increase in the dollar price, US steel Wire Rod prices remained low, impacted by transportation constraints from diminishing water levels in the Mississippi and Ohio rivers. Caution in Hot Rolled Coil purchases was observed due to the potential United Auto Workers strike. The USITC's decision to revoke countervailing duty orders stabilized prices but concerns about inflation and a seasonal decline in demand persisted. November saw stability despite rising international dollar prices and ongoing challenges.
The anticipation of a strike and USITC decisions contributed to price stability, while heightened production led to increased inventory levels. December exhibited steady prices, driven by reduced supply and the expectation of increased order fulfillment in January-February. Market participants anticipated rising steel prices, aligning with recent price hikes by US steel mills.
The reduction in spot supply, declarations of price increases by major manufacturers, and active ordering for the next quarter fueled optimism for future Steel Wire Rod prices. The last week of December maintained price stability amid reduced trade activity, weather challenges, and global disruptions, including a case filed against Houthi rebels. Diminished consumption in downstream construction industries was observed due to a decline in manufacturing activity in cold weather. The latest settled prices of Steel Wire Rod (A36-8 mm) Ex Texas in the USA at the quarter ending December 2023 was USD 1463/MT.
Asia-Pacific
The APAC region's Steel Wire Rod market exhibited a stable trend in Q4 2023. Due to surging raw material prices, Taiwanese steel mills, including Chung Hung Steel Corporation and China Steel Corporation, initially raised prices in response to increased costs of iron ore and steel scrap. Despite stagnant demand from Europe and the US, market confidence persisted as substantial orders were placed. In October, price adjustments were initiated to counter rising production costs, expected to continue into the last quarter. In November, Taiwan's spot market saw a notable increase in Steel Wire Rod prices due to supply constraints, heightened demand from automotive and construction sectors, and disruptions in the Panama Canal affecting iron ore imports. In December, Steel Wire Rod pricing followed a specific trajectory influenced by reduced demand during the winter and holiday seasons. Disruptions in trade routes, particularly in the Panama Canal and the Red Sea, further challenged market sentiment. Adverse weather conditions and reduced demand from the construction sector caused a slowdown in manufacturing activity across Taiwan. The latest price of Wire Rod (1008AK-8 mm) Ex Tainan in Taiwan for Q4 2023 was USD 1072/MT.
Europe
The European Steel Wire Rod market experienced a notable rise in price trend in Q4 2023, with sufficient demand and lower supply. Initially, in the German steel market, Steel Wire Rod prices stabilized in October as mills and distributors reduced operations during the holiday break. Rebar prices increased in the first half of October due to restocking, but demand tapered off, leading to stable prices. Pessimism exists for October, with concerns of declining demand and potential price decreases next month. Steel Wire Rod prices slightly increased in October due to tight supply and demand recovery from Polish construction industries. In November, Steel Wire Rod prices remained stable despite a decline in consumer purchasing activity, influenced by public holidays and cautious buying due to well-stocked warehouses. The market stagnated in November, with favorable outcomes for prominent manufacturers but difficulties for smaller fabricators. German crude steel production declined in October due to elevated energy prices and subdued demand. In December, Steel Wire Rod prices held steady with reduced activity in downstream industries. Optimism for the next quarter arises from expectations of robust orders in January-February. However, interest in the Steel Rebar market declined due to trade slowdown, adverse winter conditions, and escalating prices. International market uncertainties include increased freight charges due to attacks by Houthi rebels in Yemen, prompting a cautious "wait-and-see" approach among buyers. The latest price of Wire Rod (5.5 mm) CFR Bremen in Germany for the last quarter is USD 716/MT.
For the Quarter Ending September 2023
North America
In the US steel wire rod market, prices saw fluctuations throughout the third quarter. In early July, prices increased slightly due to higher mill offers, although trading activity remained subdued around the Fourth of July holiday. The market had stable demand, and domestic scrap pricing did not lead to lower wire rod spot prices. However, many buyers remained on the sidelines. As July progressed, the market maintained its stability, and prices held steady despite some expectations of a boost in demand from initiatives like the Infrastructure Investments and Jobs Act. Domestic steelmakers possibly reduced their prices to compete with decreasing import offers. In August, the market experienced stagnancy as automobile manufacturing activity slowed and construction season neared its end. Prices softened due to a decline in demand. By September, demand in the market weakened further, primarily driven by reduced requirements from the automotive and housing sectors. The looming possibility of a strike at major US automakers added uncertainty, and prices were under pressure. Overall, prices showed a degree of fluctuation but remained relatively steady during the summer and early fall.
Asia-Pacific
In mid-Q3, the Taiwanese Steel Wire Rod market is grappling with falling prices due to sluggish demand both domestically and abroad. This reduced demand has eroded market confidence, leading to reduced purchases and layoffs by companies. Lower demand for raw materials has decreased costs, which many firms have passed on to clients through lower selling prices. New business has sharply declined, especially in the export sector, citing reduced demand in various markets. This drop in demand also led to reduced input buying at the start of the third quarter. Supply chain efficiency has improved with shorter lead times, thanks to lower input demand and increased material availability. Input prices have fallen, resulting in the most significant cut in selling prices in over three years. Taiwanese manufacturers anticipate further output reductions due to softer global demand. On the other hand, steel mills have raised Steel Wire Rod prices in response to escalating raw material costs like iron ore and steel scrap, both domestically and globally. Despite a stagnant international construction sector, demand from Europe and the US remains steady, prompting these price hikes. The market anticipates increased demand following these price adjustments. Furthermore, the introduction of carbon taxes in Taiwan has been postponed until 2025, impacting the carbon neutrality target.
Europe
The German Steel Wire Rod market has experienced stability with minor fluctuations throughout the summer months and into September. In July, prices were acceptable, but trading remained limited, and demand was weak due to the summer holiday season. Manufacturers faced challenges due to reduced investments in construction projects and higher interest rates, resulting in decreased steel demand. The EU implemented safeguard measures to protect the steel market, with potential stricter quota allocations for specific steel products from certain countries. In August, prices remained stable, with buyers staying cautious. The European steel sector struggled with fluctuating demand and competition from imports. In September, there was a slight uptick in Steel Wire Rod prices due to higher downstream construction inquiries. Restocking gave hope for price increases, and steel mills raised prices in response to rising input costs. However, demand from the construction sector remained sluggish, with buyers maintaining a cautious stance. Overall, the German Steel Wire Rod market faced challenges related to weak demand, economic uncertainty, and fluctuations in steel production and prices throughout the summer months, with hopes of improvement in the construction sector in the coming months.
For the Quarter Ending June 2023
North America
The price of Steel Wire Rods showed a mixed trend in the second quarter in the US spot market as the declining economy and construction activity reduction pushed the 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, Steel Wire Rod's price gained hope after extending the debt crisis deal for two years.
Asia-Pacific
In the Chinese spot market, the price of Steel Wire Rods showed an inclining price trend as the feedstock iron ore and coke prices subdued in Q2. The price of Steel Wire Rods 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. Amid weak market sentiment, several plants shifted to maintenance shutdown and production cuts to lower the supply-demand gap. The demand from overseas countries declined as the Indian, US, and European markets put anti-dumping duties on imported steel from Chinese manufacturers. 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 declining usage of Steel Wire Rods and increased the supply level in the Chinese spot market.
Europe
The Steel Wire Rod 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 Wire Rods. 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 human resources halted 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
During the first quarter of 2023, Steel Wire Rod prices in the US market experienced an upward trend as major players raised feedstock prices amidst soaring scrap costs. After a sluggish start, demand picked up moderately, reflecting lower inventory levels following the holiday season. Downstream demand for domestic Steel Wire Rods remained strong, but producers did not raise prices significantly due to wide raw material margins. In February, rebar prices showed decoupling from raw materials, with producers having little incentive to raise selling prices despite rising production costs. Economic uncertainty and rising interest rates added to the already low construction demand. The raw material scrap market remained firm in March, with US market participants confident that Steel Wire Rod prices would remain stable. Domestic demand remained stable as seasonal construction picked up and funding from the Infrastructure Investment and Jobs Act reached end users. As a ripple effect, the Wire Rod (A36-8 mm) for Ex Texas and CFR Texas was assessed at USD 1524/MT and USD 1427/MT, respectively.
Asia Pacific
In Q1 2023, the Chinese Steel Wire Rod market witnessed an upswing in prices due to stable raw material prices and increased inquiries from the downstream construction segment. Following the holiday, market quotations were generally higher, but the market was relatively quiet due to most terminal enterprises and futures companies still being on vacation. Steel mills raised ex-factory prices during the holiday, increasing traders' costs, as Steel Wire Rod production costs remained high. The majority of BF steel mills maintained stable production, and the resumption of electric arc furnaces contributed significantly to the significant increase in February. Market sentiment improved on the demand side as rebar prices stabilized and rebounded, and on the supply side, the operating rates of domestic Electric Arc Furnace (EAF) steel mills continued to rise. Steel Wire Rod prices from Eastern China mills remained unchanged in early March, indicating their cautious assessment of the market's recovery. The overall sentiment in the domestic steel market improved somewhat throughout Q1, resulting in the Wire Rod market settling at USD 655/MT and USD 689/MT for Ex Shanghai and FOB Shanghai, respectively.
Europe
In Q1 2023, the Steel Wire Rod prices in the German market remained stagnant due to limited downstream construction queries, while domestic manufacturers continued to raise prices. The Steel Rebar market was stable, but the combination of lower energy costs and weak demand could have led to further downward pressure on prices. Although distributors had ordered from the construction sector, any increase in prices resulted in a halt in sales, as customers refused to buy above a certain price level. In January, local producers had only partially resumed output due to a lack of orders, and downstream players reported significantly lower private residential sales. Steel Wire Rod demand remained low, but mills refused to lower their prices further, citing high costs. Despite expectations of higher price movements due to rising energy and scrap costs, limited import availability for Steel Wire Rods, and producers seeking higher prices, the market remained in a deadlock. As a result, the discussion of Steel Wire Rod settled at USD 746/MT and USD 722/MT for Ex Ruhr and CFR Bremen, respectively.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the market prices for US Steel Wire Rod followed the declining trend due to slow demand and abundance of supply in the regional market. Some service centers had lowered contract quantities due to the prolonged excess steel and reduced pricing and demand volatility. Due to less competitive global prices earlier in Q4, rebar pricing in the domestic US market continued to decline. The supply chain eased in the mid-quarter, and industrial output was moderate. According to market participants, the domestic steel wire rod market in the US was quiet due to a brief dip in buying activity related to the winter holidays.
Asia-Pacific
In the Asian market, the price sentiment of Steel Wire Rods inclined as compared with the previous quarter owing to the Chinese market's limited demand and industrial restrictions. In the mid-quarter, the inventories were limited due to staff shortages and logistics issues. Consequently, a supply shortage was observed by the end-use manufacturing units leading to a price incline in the regional market. Towards the quarter's end, the demand scale rose, and the inventories resumed working at a regular pace. Chinese Wire Rod market increased significantly because of the greater support for the real estate sector. China's construction steel export prices had increased as a result of optimistic predictions for the Chinese steel market.
Europe
With a slow downstream demand expectation and rising inventory levels, the price trend for Steel wire rods in the European market declined toward the end of Q4. The material had sufficient available stockpiles to cater to domestic demand. According to buyers, Supply chain disruption impacted the transit time from many mills, and a slow operational rate in the regional market was witnessed. Purchases were delayed by customers, and fewer orders were placed. The terminal demand, according to buyers, had been largely consistent, and distributors conquered fewer inquiries. The market was constrained by excess stocks and low actual demand, according to buyers, to the point where most European stainless mills reduced production. According to sellers, domestic pricing for SS Hot-rolled coil in Europe stayed steady due to a pause in the market before the Christmas holidays.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the US Steel Rebar prices fell due to the limited buying sentiments. Market participants believe supply chain disruptions caused by price increases in July weighed on buyer spending. Buyers claim that June's most recent drops in ferrous pricing fuelled speculation that the market reached the bottom. Unfortunately for ferrous scrap sellers, later bids from overseas buyers and sluggish domestic buying in the early quarter governed the price dynamics of Steel wire rods. Furthermore, US Steel Wire Rod prices had significantly impacted weak downstream demand, cautious service center purchasing, and persistently high inventory supply. Towards the quarter's end, the price of Steel wire rod was USD 1548 per MT, Ex-Texas (USA).
Asia Pacific
Steel Wire Rod prices in the Chinese market fell during the third quarter of 2022 due to a sluggish demand outlook. According to market participants, China's steel demand significantly underperformed due to ongoing contractions in the country's real estate sector, while the firm stated that an energy crisis had increased the risk of a European recession. Furthermore, the US Federal Reserve continued to raise its policy rate, strengthening the US dollar while increasing import costs for emerging markets. Domestic rebar prices in China increased towards the quarter, starting after the government announced additional infrastructure development and easing pandemic-related restrictions. The construction sector in North China, East China, and Southwest China was reduced primarily due to stable and falling business market prices and cold terminal demand. Towards the quarter end, the price of Steel wire rod was USD 626 per MT, Ex-Shanghai (China).
Europe
Steel wire rod prices in the European market fell precipitously in the third quarter of 2022 due to low demand and higher energy costs. According to market participants, summer vacations and routine plant maintenance also contribute to low steelmakers' demand. Steel Wire Rod prices rose in the quarter as mills reduced capacity due to high production costs. Furthermore, high energy prices forced some mills to extend their August maintenance shutdowns into September. Buyers refused to pay inflated prices. As a result, the Steel Wire Rod market remains quiet this quarter, with demand subdued and buyers on the sidelines. Towards the quarter end, the price of Steel wire rod was USD 856 per MT, Ex-Ruhr (Germany).
For the Quarter Ending June 2022
North America
The Steel Wire Rod prices in the US witnessed an upswing during the second quarter of 2022 owing to the raw material shortage amidst rising geopolitical uncertainty. However, the disrupted supply chain and growing inflationary pressures further provoked Steel Wire Rod prices to soar. The Russia-Ukraine combat and its ramifications, particularly on raw materials and logistics, and the hikes in both energy prices and steelmakers' manufacturing costs, further impact supply-demand-side and production costs. However, the expansion rate in production outcomes was the slowest, as material shortages, delivery delays, and a weaker rise in new orders further hampered industry growth. Additionally, with the rising inflation rate, firms pass on higher expenses to customers through a near-record rise in output charges. Hikes in energy, fuel, and transportation costs increased input costs. As a ripple effect, the price of Steel Wire Rod settled at USD 1678/MT.
Asia Pacific
During the second quarter of 2022, the Steel Wire Rod prices witnessed fluctuating market dynamics in the Indian and Chinese markets. As per market players, weak demand, piled-up inventories, and a drop in iron-ore prices amid another round of COVID-19 outrages in China have caused supply chain disruptions, and the ongoing impact on exports is considered a factor weighing on market confidence. However, in April, the Steel Wire Rod prices surged amidst higher inflationary pressures, reflected in both rising purchase costs and output charges. Steel Wire Rod supply in the Indian market has increased since the Indian government imposed a 15% export duty. However, export viability has declined, and there have been no significant export bookings reported this quarter. Firms avoid offering standard materials because they will incur a 15% export duty. There is a chance that Steel Wire Rod prices will fall further in the short term as raw material prices fall. As a ripple effect, the Steel Wire Rod ( 5.5 mm) prices for Ex Mumbai (India) settled at USD 56820/MT.
Europe
In European nations, the Steel Wire Rod prices witnessed a declining trend during the Q2 of 2022, and trading activity in the region remained slow due to buyers' having full credit lines. In April, the Steel Wire Rod prices remained stable despite slower trading, with cheaper imports limiting buyer interest for domestic materials. However, buyers are holding back in expectation of further substantial price drops. In May and June, Steel Wire Rod prices plunged amidst sluggish buying and the availability of cheap imports. As per market players, Wire rod prices have fallen in Europe amid slow trading activity, import pressure, and more low-grade scrap raw materials. Russian wire rod export prices continued to slide because of the limited number of buyers willing to touch the product of Russian origin, given the risks associated with existing and potential further sanctions against Russia for its war in Ukraine. Wire rod prices are falling across Southern Europe, and mills may close early. Weak demand, customer destocking, and competitive import prices continued to drag prices for European wire rods.
For the Quarter Ending March 2022
North America
During Q1 of 2022, the US market witnessed an upswing due to rising inflation over raw material prices amidst the extending combat between Russia and Ukraine. In January, the US manufacturers increased Steel Wire Rod's prices by more than USD 22/MT, while buyers continued to resist. The US domestic Steel Wire Rod market continues citing transactions at record-high prices. Since the hostility between Russia-Ukraine began, the US Steel Wire Rod prices showcased inclining following supply uncertainties. As per market participants, increasing risk of procurement, constraints of financial support, transportation bottleneck, and growing uncertainty about the product availability have further raised the concern. As a ripple effect, the Steel Wire Rod (A36-8 mm) prices for Ex-Texas (USA) settled at USD 1370/MT during March-ending.
Asia
During the first quarter of 2022, the Steel Wire Rod prices in the Asian market are severely impacted by a host of elements, including significant COVID-19 disruptions, stretched international supply chains, rising global inflationary pressures, and elevated geopolitical tensions amid Eastern European nations. As per market participants, the imbalance between raw materials supply and demand outlook was a significant factor contributing to a further rise in manufacturers' purchasing costs. Additionally, the demand for Steel Wire Rod remained robust throughout the quarter while the Russian-Ukraine conflict provoked buyers to adopt a wait-and-watch policy for further price hikes. As a ripple effect, the Steel Wire Rod prices for Ex Mumbai (India) settled at INR 63000/MT.
Europe
In Europe, the Steel Wire Rod prices witnessed an inclining trend owing to the stretched supply chains and soaring raw materials costs amidst the Russia-Ukraine war. As per market participants, the Russia-Ukraine conflict has provoked market panic about supply shortage, resulting in prices moving north radically, be it iron ore or coking coal. The Russia-Ukraine conflict and its repercussions, especially on raw materials and logistics, impacted supply and demand dynamics, with high prices leading to small-value transactions to meet emergency requirements. Furthermore, the sanctions imposed on Russia, coupled with the rouble's declining exchange rate of the rouble and Russia's removal from the Swift international payment system, and other restrictions imposed, have led to a surge in Steel Wire Rod prices.
