The global Cold Rolled Coil (CRC) market has shown divergent trends this month, reflecting region-specific economic and industrial dynamics. While prices in the USA and China have declined, Germany has maintained stability, supported by steady production and balanced demand.
The USA CRC market experienced a challenging period, with weekly price declines driven by an imbalance in supply and demand. Domestic production remained stable, but subdued export activity, reduced domestic demand, and evolving trade policies compounded the issue. Exports to key markets, including Canada and Mexico, continued to decline, while domestic demand weakened due to sluggish construction and manufacturing sectors.
Additionally, trade policy developments have introduced further uncertainty. The US Department of Commerce’s recent imposition of anti-dumping margins on steel products from Japan aims to protect domestic manufacturers but may reduce competition, potentially influencing pricing in the long term. This combination of factors has left the US CRC market grappling with oversupply and limited absorption capacity.
Germany’s CRC market demonstrated resilience, maintaining stable prices throughout the period. Local steelmakers have continued consistent production, meeting the domestic demand largely without pressure from imports. The demand remained robust, bolstered by industrial activity despite moderate growth in downstream sectors. This equilibrium between production and consumption has helped Germany sustain stable pricing amidst global market fluctuations.
China’s CRC market faced declining prices, despite robust production levels. According to the National Bureau of Statistics, CRC production saw year-on-year growth during the first ten months of the year, reflecting the strength of the country’s manufacturing sector. However, this growth has led to rising inventories, as supply outpaces demand.
Demand has softened due to a downturn in China’s real estate sector. The total area of new commercial real estate sold and the area under construction both witnessed declines, further pressuring CRC prices. This slowdown in one of the key consumption sectors has eroded market confidence and contributed to weaker pricing dynamics.
According to ChemAnalyst, sales of Cold Rolled Coil in the USA and Germany are expected to decline, driven by subdued purchasing activity. In China, prices are projected to face further downward pressure due to ample supply and weakened market confidence. These trends underscore the region-specific challenges facing the global CRC market, as economic and industrial factors continue to shape its trajectory.
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