Stainless Steel (Flat) Prices Trend and Forecast
North America
As the fourth quarter of 2022
ended, Stainless
Steel prices showed a dwindling price movement due to falling
downstream inquiries and higher inventories. Buyers were focused in October on
reducing inventories across all flat products through the end of the year,
which kept them out of the spot market. Mills had attempted to remain
competitive with import offers despite falling scrap prices, as downstream
demand from new projects did not warrant additional spot buys or bookings of
larger imports or rising financing costs. Mill margins were under pressure as
input costs rose and the continued push to use more scrap in furnaces.
According to manufacturers, downstream demand was difficult, and any increase
in scrap was likely to erode mill margins. Thus, the SS 304 HR Plate (6 x 1250
x 2000) prices for Ex Texas (USA) settled at USD 3978/MT.
Asia Pacific
Stainless Steel (Flat) prices in
the Chinese market edged downward in the fourth quarter of 2022 due to higher
inventory levels and limited purchasing activity amid COVID-19 control and
prevention measures. Stainless Steel (Flat) prices rose in October due to an
unexpected arrival following the festival, a shortage of certain
specifications, and raw material supply concerns. The demand effect in the favorable
trading seasons was fading as the traditional slack season began, and overall
demand for stainless steel was weak. The domestic epidemic situation was
complicated. Logistics were clogged, downstream procurement willingness was
low, and the transaction required robust inquiries. On the demand side,
stainless steel prices rebounded more in mid-December, influenced by futures
prices, providing some profit margin to NPI plants. Thus, the SS 304 HR Plate
(6 x 1250 x 2000) prices for FOB Shandong settled at USD 1576/MT.
Europe
In the fourth quarter of 2022,
Stainless Steel (Flat) prices showed stagnation in the German market due to
limited buying inquiries and higher inventory levels. Buyers who ordered SS HRC
for December delivery reported that the material was already available in early
Q4, with lead times from several mills as low as two weeks. Despite the falling
prices and short lead times, inquiries from downstream players remained low.
Order cancellations also resulted from energy cost uncertainty and demand
destruction. In December, some mills planned to keep Christmas production shut
down for longer than usual. Given that supply still vastly outnumbers demand,
market participants remained pessimistic about the impact of such prolonged
stoppages on prices. Some mills have stopped trading and will re-enter the
market in the first half of January. Due to the ripple effect, the SS 304 HR
Plate (8 x 1350 x 2000) prices for Ex Ruhr (Germany) settled at USD 3361/MT.
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