For the Quarter Ending September 2023



North America

In the third quarter of 2023, the Cold Rolled Coil market in the United States witnessed a decline in prices. Cold Rolled Coil prices experienced a modest 4% increase primarily due to higher mill offers; however, trading remained subdued during the 4th of July holiday. The extended holiday period, coupled with concerns about managing inventories in the summer slowdown, led to cautious steel purchases. The temporary shutdown of plants by US automakers for maintenance adversely affected steel demand. Initially, Cold Rolled Coil prices rose due to market dynamics but later declined due to an unplanned outage at Steel Dynamics' Texas mill and a growing price gap between hot-dipped galvanized and cold-rolled coil prices. The market faced downward pressure in August due to lower offers, issues with rebar demand, and challenges in scrap collection. Ongoing labor disputes in the automotive industry and inflation further impacted the market. The threat of a strike by the United Auto Workers (UAW) added downward pressure to Cold Rolled Coil prices. Despite a stronger global dollar, prices remained stable, with reduced bids and logistical constraints contributing to the uncertainty. The steel market closely monitored developments in the automotive industry, labor disputes, and inflation, making the outlook for Cold Rolled Coil prices uncertain, with the potential for further fluctuations.

Asia-Pacific

In the third quarter of 2023, the Cold Rolled Coil (CRC) market in Taiwan experienced a significant price decline due to a bearish market sentiment. Decreased demand in the automotive and construction sectors, driven by sluggish sales in the local automotive industry amid global economic challenges and higher interest rates, contributed to this trend. Chinese manufacturers' oversupply and Australian anti-dumping duties exacerbated high inventory levels, prompting local mills to lower prices to attract buyers. The oversupply from overseas Chinese mills and the weakening global economy intensified market competition. However, by mid-Q3, CRC prices in Taiwan rebounded thanks to a more stable supply-demand outlook. Import quantities increased notably, with China, South Korea, and Japan being major sources. Import prices were higher than Taiwan's market prices, making China a competitive option. On the supply side, Taiwan maintained stable inventory levels, but decreased client demand led to reduced output, revealing spare capacity. Taiwanese steel mills raised CRC prices in response to higher raw material costs, both domestically and globally, despite stagnant overseas demand. Despite economic uncertainties, the price increases generated confidence in higher downstream market demand, driven by imports from foreign countries.

Get Real Time Prices of Cold Rolled Coil: https://www.chemanalyst.com/Pricing-data/cold-rolled-coil-1355

Europe

In the UK, Cold Rolled Coil prices declined during Q3 as the European spot market remained quiet, reducing trade. European steel prices also fell due to poor demand, prompting mills to offer discounts, but buyers hesitated, anticipating more price drops. Major producers sought new customers, creating challenges for distributors with excess inventory. While some mills tried raising prices, uncertainty persisted due to high inventories and weak demand, especially in automotive and construction. Delays in deliveries, particularly for hot-dip galvanized coils, compounded issues. Although there was an expectation of increased demand in September, it remained limited due to low construction and automotive activity, leading to further price drops. The Wire Rod market in Italy faced similar challenges, with cost increases and reduced automotive demand affecting prices. Despite slow trading and weak demand, producers hesitated to lower prices further due to rising raw material and energy costs. Downstream demand remained lackluster, and restocking in key sectors was absent. Despite these challenges, consistent production rates and international demand provided some stability and optimism for future downstream market growth in the UK's Cold Rolled Coil industry.





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