First Quarter of 2023 in Asia Pacific Chequered Plate Prices
North America
In the US market, Chequered
Plate prices increased in the third quarter of 2023 due to stagnant
demand amidst turmoil in the banking sector. Since mid-October, plant
utilization rates remained below 75%, and low service center inventories and
high raw material prices contributed to higher prices of finished steel. Mills
received higher prices on the spot market, causing an increase in steel goods'
spot prices. Service centers were cautious when adding inventory as future
prices were uncertain. Nucor Brandenberg's new mill appeared to be a few months
away from reaching full output. Congested port handling rates caused cargo
handling rates to rise. The market was still digesting price increases from
last month, and the reduction in mill production caused by weak downstream
industry demand led to higher prices. Inflationary cost increases impacted
almost all segments, forcing participants in the market to adjust their
pricing. The US steelmakers continued to be unable to meet the market's demand,
which helped keep steel prices stable. Domestic steel mills underwent extensive
maintenance in 2023, worsening the supply shortage situation. As a ripple
effect, the SS Chequered Plate (6 mm) prices for Ex Texas (USA) settled at USD
4568/MT.
Asia Pacific
In the first quarter of 2023,
Chinese Chequered Plate prices decreased due to falling Nickel costs and a
slowdown in demand from the construction and automotive industries. Following
the Spring Festival holiday, sales of Chequered Plate slowed down, and there
was no apparent consumption of spot resources. Market players were on vacation
during the Chinese New Year Holidays, and despite the delivery of large factory
resources, they were not picked up, resulting in resource accumulation. With
the resumption of production at large steel plants, downstream demand gradually
increased, but inventory levels started to rise, and pressure from the steel
mill eroded cost support for raw materials and ferronickel. Domestic mills
reduced production due to low prices, which failed to curb the price decline.
Market pessimism was strong, and the profit margin of the industry chain was
squeezed. Domestic iron plants were unable to accept low prices due to
production losses, and most of them implemented production reduction plans. As
a ripple effect, the SS Chequered Plate (304-6 mm) prices for Ex Tangshan
settled at USD 2475/MT.
Europe
During the first quarter of 2023,
Chequered Plate prices in the European market remained stagnant due to various
factors, including rising slab prices, increased demand, and longer plate
delivery times. Spot distributors accepted the price increase, but larger
buyers were willing to pay higher prices for April-June plates. However, larger
distributors were hesitant to commit to deals due to longer lead times, and German
mills had fewer volumes for spot purchasers due to strong order books with
projects. Heavy plate availability was constrained due to strong order books in
Germany and Italy, a stronger emphasis on projects and long-term agreements
over the spot market by German mills, and decreased production in Central
Europe. Despite strong consumer demand, margins throughout the value chain
decreased. Limited domestic supply and steady demand supported domestic prices,
and buyers remained cautious about long lead times and hyped-up prices after
the latest price rises earlier this month. Thus, the SS Chequered Plate
(304-5mm) prices for Ex Ruhr settled at USD 3740/MT.
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