For the Quarter Ending June 2023

North America

The US spot market experienced a decline in the overall price of steel plates during the second quarter of June 2023. This was primarily attributed to the country's declining economic situation and a higher inventory level. In April, there was a glimmer of hope for the steel plate market as prices were high initially. However, production cuts were observed as the joint company of US Nucor and Japanese Yamato Kogyu – Nucor Yamato, shut down from April 9th to 16th. The Nucor mill increased the price of steel plates due to a decrease in lead time. However, in the latter half of the second quarter, prices went downward. The economic uncertainties caused by the debt crisis and the fall of major US banks created a pessimistic market sentiment. Consequently, the demand from the downstream automobile industry declined, leading to the shutdown of major automotive companies like Nissan, Kia, and Sedan in June. This reduction in consumption resulted in an increase in inventory levels. Additionally, the price of feedstock iron ore decreased as the extraction rate increased in overseas mines, leading to surplus supply at a cheaper rate in the spot market. As a result, local manufacturers were compelled to offer discounts even on smaller orders to combat the sluggish market.

Asia-Pacific

In the Japanese spot market, the price of steel plates showed a continuous declining trend throughout the second quarter. The production rate at major steel plants started the quarter on a strong note. However, the downstream construction sector remained negative due to uncertain global economic conditions. The Japanese automobile industry also faced a sluggish market sentiment due to rising inflation rates affecting demand from US and European markets. Declining steel scrap prices put downward pressure on local steel mills. In the latter half of the second quarter, many major steel plants underwent production cuts for infrastructural upgrades. For instance, JFE Steel Corporation planned to produce green steel as part of the 'JGreeX' project, aligning with the decarburization efforts of the Japanese government. This production cut resulted in a surplus supply in the local inventory, causing buyers to hesitate in placing large orders and making the market bearish.

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Europe

The Italian steel plate market experienced an overall declining trend during the second quarter. Prices initially increased in April but declined in the latter half. Rising production costs, including energy and feedstock prices, led to the price hike. Stable downstream demand from the automobile industry contributed to the increase in steel plate prices in the Italian spot market. However, the global economic conditions worsened, leading to a rising inflation rate across Italy and Europe. The steel production rate remained high while demand from the downstream construction sector weakened, resulting in high inventory levels. Buyers were compelled to offer steel plates at reduced prices to remain competitive in the global market. Moreover, overseas steel suppliers, particularly China, flooded the Italian and major European markets with surplus steel plate supply, further exerting downward pressure on prices. The Italian government also imposed tariffs on Russian-origin steel to address the issue of increasing local inventory levels.