For the Quarter Ending June 2023

North America:

In the US spot market, the price of Steel Plate underwent a decline during the second quarter of June 2023, primarily attributed to the country's deteriorating economic landscape and heightened inventory levels. The early stages of the quarter held a glimmer of hope for the Steel Plate market, with prices exhibiting strength in April. However, production cuts were witnessed in April when the joint venture of US-based Nucor and Japanese Yamato Kogyu – Nucor Yamato was temporarily shut down from April 9th to 16th. The Nucor mill's operation curtailment had an impact on Steel Plate prices, with a slight increase attributed to the reduction in lead time from 8-10 hours to 8-9 hours. The latter half of the second quarter saw a decline in prices. Escalating economic uncertainties, stemming from the debt crisis precipitated by the downfall of major US banks, cast a pessimistic sentiment over the US market. Consequently, diminished demand from the downstream automobile industry led to the suspension of operations by major automotive players like Nissan, Kia, and Sedan by the end of June, aimed at rebalancing supply and demand. Reduced consumption in the US downstream automobile and construction sectors contributed to an inventory buildup. The price of feedstock Iron ore also dipped as increased extraction in overseas mines, particularly in Australia and Indonesia, resulted in an excess supply available at lower rates in the spot market. In response, local manufacturers were compelled to offer discounts even for smaller orders amidst the sluggish market conditions.

Asia-Pacific:

Throughout the second quarter, the Japanese Steel Plate market experienced a continuous downward price trend. The quarter's commencement saw major steel plants operating at an accelerated pace in terms of production. However, the downstream construction sector maintained a negative outlook during Q2, influenced by uncertain global economic conditions. The Japanese automobile industry similarly grappled with a sluggish market sentiment due to rising inflation affecting demand from overseas markets in the US and Europe. Declining steel scrap prices exerted further downward pressure on local steel mills. The latter half of the second quarter witnessed production cuts in several major steel plants, driven by infrastructural upgrades. Notably, the JFE Steel corporation initiated the 'JGreeX' project to produce green steel, aligning with the Japanese government's decarburization efforts. These production cuts led to surplus supply in local inventories, discouraging significant order placements and fostering a bearish market sentiment.

Steel Plates: https://www.chemanalyst.com/Pricing-data/steel-plate-1439

Europe:

In the second quarter, the Italian Steel Plate market displayed an overall declining trend, despite an initial price increase in April. Subsequently, prices exhibited persistent decline in the latter half of the quarter. The price surge in April was attributed to heightened production costs driven by rising energy expenses and feedstock prices. Stable downstream demand from the automobile industry bolstered Steel Plate prices in the Italian spot market. However, as the second half unfolded, the global economic landscape deteriorated, contributing to rising inflation rates across Italy and Europe. While steel production remained elevated, weak demand from the construction sector led to surplus inventory levels. This scenario prompted buyers to offer Steel Plates at reduced prices to remain competitive in the global market. Oversupply of Steel Plate from overseas suppliers, notably China, exerted downward pressure on prices from local Italian mills. The Italian government's imposition of tariffs on Russian-origin steel was a response to increasing local inventory levels.




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