As of July 26, 2022, steel prices are still in a continuous downward trend.
The future for this commodity has gone from about 1,500 dollars at the beginning of the year to about $850 in late July — down more than 40 percent at the time.
With rising inflation, the COVID-19 closure in parts of China and conflict between Russia and Ukraine, world markets have been weakened since late March, all causing uncertainties about the prospect of demand in 2022 and 2023. The Chicago Mercantile Exchange (CME) futures fell 0.93 percent in August and peaked at $851 per ton on July 26.
Last month, its value was down 24.42 percent and on July 25 it was down to US$859. Hot coil prices jumped to a multi-month increase in mid-March as fears of steel supply and exports from Russia and Ukraine supported the market.
However, since Shanghai imposed a strict quarantine in early April, sentiment has fallen, with prices dropping in the following weeks. The Chinese Financial Center officially ended two months of closure on 1 June, and further restrictions were lifted on 29 June.
Despite the spread of COVID-19 across the country, China’s economic recovery in July accelerated with increased confidence and increased business activity.
Interested in learning more about steel commodity prices and prospects? In this paper, the latest market impact news and predictions of some steel price analysts are discussed. The price declined to $950 per month in 2021 from earlier forecast to $920 per month, but prices are expected to drop to $750 per month in 2022.
Our forecasts for prices were realized in the second half of 2020, and prices in Europe and Asia declined in the second half of 2021, while US steel prices began to stabilize from an unusual return from the fourth quarter of October 2020.
The report stated: The company said. Steel market players are increasingly wary of their purchase requirements.
The outlook for global prices especially for coil products has gradually become negative. The highest record in the summer of 2021 surprised many.
Steel Products price
Steel market players are increasingly wary of their purchase requirements.
The outlook for global prices especially for coil products has gradually become negative. The highest record in the summer of 2021 surprised many.
The price cycle peak occurs at different times in each region. The value of trade in Europe peaked this June as North America peaked in September. Asian prices dropped during the summer months. Another wave of COVID-19 sweeping the world has obscured the landscape for early 2022.
The malicious type of Omicron can slow the recovery of the steel market. Many shoppers are worried about steep price cuts in the coming months.
The three regions have different trends over the short-term. European paper prices are expected to rise in early 2022.
Preparations are expected to resume at this time. Factories eager to compensate for their electricity and gas bills.
The value of transactions in North America is expected to drop in the coming months. Purchasing activity is weakened due to an increase in inventory levels in distributors and service centers.
Home steelers may offer discounts to increase sales. MPS predicts that the average combined transaction value of flat panel products in Asia will decline soon. The outbreak of COVID-19 across the region has reduced market activity and sentiment.
Partial seasonal improvements expected in spring prices Sales of steel in all areas are expected to drop by the second half of 2022.
The growth in sheet consumption is expected to slow due to rising costs of steel and other materials. Inflation pressure can reduce consumer costs.
It is also expected that demand improvement in the automotive industry will continue for some time. Prices are expected to support more than the historical average because of high factory entry costs and industry quality reduction initiatives. The 2022 economic outlook is relatively strong.
Steel Products price in India
Steel Price India Down 10-15% in 2022 New Delhi, December 15 (IANS): Indian steel prices will fall 10-15% next year as domestic and international steel is low spread.
Water supply restrictions are reduced due to an increase in crude steel production in India and more material is transferred to local consumers. S&P Global Platts Analytics expects domestic hot-plate prices in India to average Rs. 53,550-56,700 (US $745-705) per ton in 2022. 58% higher than Rs 39,761 per ton in 2020. In 2019 the average pre-pandemic price was Rs. 38,567 per ton.
Platz data showed that the expansion of the Indo-Chinese internal HRC reached $220 per ton on 15 November, the highest level since April 2017.
Since the end of 2017, there has been a strong link between steel prices in India and China. Two prices changed in October this year but started to fall again.
S&P Global Platts predicts Indian prices affected by market conditions in China in 2022 due to declining economic growth and a decline in the real estate sector.
High steel prices in India this year are mainly due to increased export of Indian steel mills in order to exploit the high prices offered abroad, resulting in a decrease in domestic supply. India specifically targets Vietnam, Italy, Belgium, and Turkey.
India exported 14% of the final steel production in April-October, the same proportion of the previous year but from 8% in April-October 2019, the Platts Analytics calculated based on data from the Joint Farm Council.
According to S&P Global Plates Analytics data today, domestic steel prices are down 10-15% in 2022, as production increases and subsequently decreases supply restrictions. Steel sales expected to drop in all surveyed areas in the second half of 2022.
The growth in plate consumption is expected to decrease due to higher prices for steel and other materials. Inflation pressure can reduce consumer costs. Moreover, demand recovery in the automobile industry is expected to continue.
