Chequered Plate Price Trend and Forecast
North America
During the third quarter of 2022,
the Chequered
Plate prices witnessed a negative sentiment in the US market owing to
the subdued demand outlook. As per market players, Chequered Plate prices have
fallen as service centers have held off buying in the face of weak demand from
consumers, whose shortages of labor and parts have hit. Fears that the United
States is either already in or on the verge of a recession have also reduced
purchases. Furthermore, the mill only serves the flat-rolled steel market, and
the idling was blamed on high import levels and market conditions. The idling
is the first market-related closure reported by a US steelmaker in recent memory.
Market participants have complained about persistent oversupply and a lack of
more permanent production cuts to reduce volumes. US Steel has idled its No. 8
blast furnace at its Gary Works steel mill in Indiana. Steel mill outages
throughout the rest of the year will eliminate nearly 54431 MT of flat-rolled
production, but few believe this will alleviate the persistent oversupply.
Therefore, the discussions for SS Chequered Plate (6 mm) prices for Ex Texas
(USA) settled at USD 4483/MT.
Asia Pacific
In the Asian market, the
Chequered Plate prices declined in the Indian market during the third quarter
of 2022 amidst falling raw material costs and dwindling domestic demand. Some
plants have shut down operations, while others were operating at 40-50% capacity,
driving up the price of lumps. Furthermore, pellet prices have trended upward
as demand for the material typically rises during the rainy season, unlike iron
ore, which retains a higher moisture level, resulting in an iron ore shortage
during the monsoons. Some commodities fell in price in July due to production
cuts in tier 1 mills and the secondary sector, while others rose due to supply
constraints. In anticipation of further drops, dealers reduced purchase orders.
Indian steel mills were reportedly postponing annual maintenance to avoid
stockpiling. Some prominent buyers negotiate for more discounts or hold back
purchase decisions because of price volatility. Thus, the SS Chequered Plate
(304-6 mm) prices for Ex Shanghai (China) settled at USD 2082/MT.
Europe
In the European market, the
Chequered Plate prices witnessed a sliding price trend during the third quarter
of 2022 owing to the rising concerns about consumption, the energy crisis, and
a looming European recession. Despite weak demand for steel
Plate in Europe, the producers have been pushing for higher prices for
both flat and long steel products recently, seeking USD 50-100 per tonne
increases to account for rising costs. According to market participants,
because these price increases are cost-driven rather than demand-driven, they
will be challenging to achieve in transactions. Furthermore, if more output
curtailment is implemented in the autumn of 2022, European mills may reach a
point where the supply and demand balance is restored by the first quarter of
2023. As a result, producers may try to implement price increases. Sources
agreed that the impact of the current production cuts on European steel prices
was still uncertain, and they expected more European mills to reduce output to
balance the market. Thus, the SS Chequered Plate (304-5mm) prices for Ex Ruhr
(Germany) settled at USD 3870/MT.
ChemAnalyst tackles the primary
difficulty areas of the worldwide chemical, petroleum, pharmaceutical, and
petrochemical industries, empowering decision-makers to make informed
decisions. It examines and analyses geopolitical risks, environmental concerns,
raw material availability, supply chain functioning, and technological
disruption. It focuses on market volatility and guarantees that clients manage
obstacles and hazards effectively and efficiently. ChemAnalyst's primary
expertise has been data timeliness and accuracy, benefiting both local and
global industries by tuning in to real-time data points to execute
multibillion-dollar projects internationally.
Comments
Post a Comment