Steel Wire Rod prices in the USA, Germany, and China have shown a downward trend due to weak demand, market uncertainty, and disruptions in the global supply chain.
Steel Wire Rod prices have declined by 1.5% due to market uncertainties in USA with the week ending on September 20th. Suppliers are utilizing excess capacity to replenish stocks in response to falling client demand.
Additionally, a recent cooperation agreement between the U.S. and Argentina aims to enhance trade and investment in critical minerals, which will help stabilize U.S. supply chains and reduce reliance on Chinese imports over time.
On the demand side, the construction industry is witnessing a significant downturn in confidence and profit margins, while the automotive sector has experienced a decline in sales, contributing to the overall sluggishness in the market.
The prevailing market sentiment is cautious, with many participants opted a wait and see strategy in purchasing due to uncertainties regarding demand conditions.
Steel Wire Rod prices in Germany observed a decline by 0.3% with the week ending September 20th. Moreover, Supply conditions in the Germany Steel Wire Rod market remain steady but cautious. Despite the ongoing discussions surrounding imports, there has been minimal demand due to low consumption and competitive domestic mill prices.
However, the market faces uncertainty regarding future supply, as some mills are planning maintenance stoppages, particularly in neighbouring regions like Poland, where a major supplier is expected to halt production for some weeks in September. Moreover, Demand for Steel Wire Rod in Germany continues to be weak, particularly in the construction sector, which is grappling with regulatory uncertainties, high interest rates, and increased borrowing costs.
This has resulted in fewer new project applications, despite a growing need for housing due to immigrant inflows and single-person occupancies. Buyers have adopted a cautious approach, postponing restocking amid subdued market conditions.
The prices of Steel Wire Rod in China decline by 1.5% due to supply chain disruption on September 20th. Moreover, the operating rate of blast furnaces in some steel mills has shown a slight increase and similarly, the capacity utilization rate also rose.
Daily average pig iron production climbed up. The easing cost pressure on raw materials has improved profitability for steel mills, leading to a deceleration in new maintenance additions and a return to production for previously halted facilities.
On the demand side, the daily average port pick-up volume of imported ore also saw a drop. This decline can be attributed to a significant reduction in arrival volumes, partly due to the impact of a recent typhoon. Despite this, steel mills are continuing to restock as needed, which has contributed to the observed destocking trend at ports.
According to ChemAnalyst, Steel Wire Rod is anticipated to differ regionally, with a possible rise in the United States due to seasonal demand, especially in the automotive sector.
In Germany, prices are expected to increase due to higher production costs such as transportation and raw materials. On the other hand, China is expected to experience decrease in automobile demand, resulting in decrease in consumption of Steel Wire Rod and their prices.
Courtesy : www.chemanalyst.com
