The Second Quarter of 2023 the US Galvanized Plain Sheet Prices Online

North America

The Galvanized Plain Sheet Prices overall declined in the US spot market amid the declining economic situation in the country, along with a higher inventory level in the second Quarter of June 2023. The initial phase of the second quarter showed slight hope for the Galvanized Plain Sheet market as the prices were high in April. The production cut was observed in April, as the joint company of US Nucor and Japanese Yamato Kogyu – Nucor Yamato was shut down between 9 to 16th April. The Nucor mill did the increase in the price of Galvanized Plain Sheet as the lead time decreased from 8-10 hours to 8-9 hours. In the H2 of the second quarter, the prices went downward. The rising economic uncertainties caused by the debt crisis due to the fall of major US banks made the US market sentiment pessimistic. Consequently, the demand from the downstream automobile industry declined, resulting in the shutdown of three major automotive companies like, Nissan, Kia, and Sedan, in June to reduce the supply-demand gap. The reduced consumption of Galvanized Plain Sheet sheets in the US downstream automobile and construction industry led to an increase in inventory level. The feedstock Iron ore prices also decreased as the extraction rate increased in the overseas mines in Australia and Indonesia, leading to surplus supply at a much cheaper rate in the spot market. As a result, the local manufacturers were provoked to offer discounts even on smaller orders as the market got sluggish.

Asia-pacific

The price of Galvanized Plain Sheet showed a continuous declining trend throughout the second quarter in the Japanese spot market. At the start of the second quarter, the production rate was on a higher edge as the major galvanizing plants performed at a faster pace. Meanwhile, the downstream construction sector remained negative throughout Q2 due to uncertain global economic conditions. The Japanese automobile industry also faced a sluggish market sentiment as the rising inflation rate affected demand from the overseas US and European markets. The steel scrap prices were also declining, which put downward pressure on the local steel mills. In H2 of the second quarter, most of the major steel plants underwent production cuts for infrastructural upgradations, such as the JFE Steel corporation planned to produce green steel under the ‘JGreeX’ project for providing a push toward the decarburization effort of the Japanese government. The production cut resulted in a surplus supply in the local inventory that provoked buyers to shy away from placing large orders, and the market became bearish.

Europe

In the second quarter, the Italian Galvanized Plain Sheet market showed an overall declining trend amid a price increase in the initial period of April, and later declining price was persistent in the H2. The prices went high due to increased production costs amid rising energy costs and feedstock prices. The downstream demand from the construction industry remained stable, which helped in raising the price of Galvanized Plain Sheets in the Italian spot market. In the second half, the market situation changed as the global economic condition was deprived, leading to a rising inflation rate across Italy and other European nations. The steel production rate was high amid weak demand from the downstream construction sector resulting in high inventory levels. This provoked the buyers to offer Galvanized Plain Sheet sheets at a much-reduced price to sustain in the Competitive global market. Overseas steel suppliers such as China were offering a surplus supply of Galvanized Plain Sheet sheets in the Italian and all major European markets, which put downward pressure on the Galvanized Plain Sheet prices produced by the local Italian Mills. The Italian government-imposed tariff on Russian-origin steel as that was increasing the local inventory levels.

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