Stainless Steel Round Bar Price Trend and Forecast
North America
Towards the closure of Q4, the Stainless Steel Round Bar prices showcased a declining trend in the US market owing to the higher inventory level and limited downstream demand outlook. In October, the downstream buyers remain observant of drawing down inventories across all products through the end of the year. With falling scrap prices, mills had tried to remain competitive with import offers as downstream demand from new projects had not warranted additional spot buys or bookings of more significant imports, along with rising financing costs. Participants in the US Stainless Steel market were optimistic about the new year, but spot prices remained lower than they were during the previous summer and fall seasons. This winter's activity has slowed significantly, but downstream work appears to be picking up for next year.
Asia Pacific
In the Chinese market, the
Stainless-Steel Round Bar prices showcased a rising trend in the final quarter
of 2022 owing to the lower inventory level and firm downstream demand amidst
the COVID control and prevention measures. According to market participants,
the upstream of stainless steel has decreased. The price of stainless
steel increased due to the unexpected arrival in October following the
festival, a shortage of some specifications, and the fermentation of raw
material supply problems. With a minor adjustment, the stainless-steel market
was mostly stable in mid-Q4. In some areas, epidemic prevention and control
measures were tightened, and logistics and transportation were halted. Traders
and downstream businesses waited and watched, only buying when necessary.
Downstream demand was declining toward the end of the year, and market
willingness to purchase was low.
Europe
Towards the end of the fourth
quarter of 2022, Stainless Steel Round Bar prices in the German market
displayed a mixed trend due to increased inventory availability and a limited
downstream demand outlook. With price volatility on the rise, European steel
producers were considering switching to shorter terms with fixed-price contract
customers, particularly automakers. Mills attempted to harden their stance to
save money. Buyers who ordered December delivery said the material was already
available, with lead times as low as two weeks from several mills. Customers
were taking a wait-and-see approach due to the current economic uncertainty,
and even large buyers were purchasing in smaller quantities than usual.
According to a large buyer, lower demand was caused primarily by prices
remaining too high, given the significant slowdown in downstream activity. Some
mills have stopped providing quotations and will re-enter the market in the
first half of January. Domestic prices for SS Round Bar in Europe remained
unchanged due to a market slowdown ahead of the Christmas holidays.
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