For the Quarter Ending June 2023

North America:

In June 2023, the US spot market for Galvanized Plain Sheet witnessed an overall price decline, primarily driven by the deteriorating economic conditions within the country and an increase in inventory levels. At the outset of the second quarter, there was a glimmer of hope as prices remained high in April. However, production cuts were evident in April when Nucor Yamato, a joint venture between US Nucor and Japanese Yamato Kogyu, temporarily shut down operations from April 9th to 16th. Nucor mill increased Galvanized Plain Sheet prices slightly as lead times decreased from 8-10 hours to 8-9 hours. In the latter half of the second quarter, prices took a downward trajectory. Mounting economic uncertainties, exacerbated by the debt crisis following the collapse of major US banks, cast a pessimistic shadow over the market sentiment. Consequently, demand from the downstream automobile industry decreased, leading to the shutdown of three major automotive companies - Nissan, Kia, and Sedan - in June to align with supply-demand dynamics. The reduced consumption of Galvanized Plain Sheets in the US downstream automobile and construction sectors resulted in increased inventory levels. Additionally, lower feedstock Iron ore prices were observed as extraction rates increased in overseas mines in Australia and Indonesia, flooding the market with surplus supply at competitive rates. Local manufacturers responded by offering discounts, even on smaller orders, as the market experienced sluggishness.

Asia-Pacific:

Throughout the second quarter of 2023, the Japanese spot market for Galvanized Plain Sheets witnessed a consistent downward trend in prices. At the beginning of the quarter, production rates were robust, with major galvanizing plants operating at a brisk pace. However, the downstream construction sector remained pessimistic throughout Q2 due to uncertain global economic conditions. The Japanese automobile industry also faced subdued market sentiment as rising inflation rates impacted demand from overseas markets in the US and Europe. Declining steel scrap prices added further pressure on local steel mills. In the latter half of the second quarter, several major steel plants implemented production cuts for infrastructure upgrades. Notably, JFE Steel Corporation initiated the 'JGreeX' project to produce green steel, aligning with the Japanese government's decarbonization efforts. These production cuts resulted in a surplus supply in local inventories, prompting buyers to refrain from placing substantial orders, leading to a bearish market outlook.

Get Real Time Prices of Galvanized Plain Sheet: https://www.chemanalyst.com/Pricing-data/galvanized-plain-sheet-1366

Europe:

In the second quarter of 2023, the Italian Galvanized Plain Sheet market experienced an overall decline in prices. Initially, prices surged in April due to increased production costs, driven by rising energy costs and feedstock prices. Stable demand from the construction industry supported the price of Galvanized Plain Sheets in the Italian spot market during this period. However, in the latter half of the second quarter, market dynamics shifted as the global economic conditions deteriorated, leading to increased inflation rates across Italy and other European nations. Steel production remained high despite weak demand from the downstream construction sector, resulting in elevated inventory levels. This prompted buyers to offer Galvanized Plain Sheets at significantly reduced prices to remain competitive in the global market. Furthermore, overseas steel suppliers, notably China, flooded the Italian and major European markets with surplus Galvanized Plain Sheets, exerting downward pressure on prices produced by local Italian mills. To address the issue of rising inventory levels, the Italian government imposed tariffs on Russian-origin steel, further complicating the local market dynamics.



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