North America

In the third quarter, the US market for hot-rolled stainless steel coils experienced a downturn in prices, attributed to various factors. Local inventories surged, and increased availability of feedstock contributed to the overall price decline. Reduced prices of raw iron ore, stemming from expanded output in Australia and Indonesia, coupled with lower costs of coking coal and fuel, further fueled the downward trend. The US Federal Reserve's decision to raise interest rates added a bearish sentiment, impacting both domestic and international orders. Slight growth in upstream steel production resulted in an excess of crude steel, while US automakers faced heightened competition from the thriving Chinese electric vehicle industry. Abundant supplies of stainless-steel hot-rolled coils persisted, with weak demand persisting due to challenges such as Russian sanctions affecting energy supply, OPEC export restrictions, the ongoing UAW strike, and the Federal Reserve's interest rate stance. The US spot market saw an increase in nickel supply due to issues at Norilsk Nickel and the sale of the Avebury nickel mine in Tasmania. Concerns escalated due to reduced demand from the oil and gas sector, energy supply shortages, and an extended OPEC reduction timeline. The Federal Reserve's announcement created market uncertainty, prompting caution among both local and international buyers, with the UAW strike exacerbating consumption reduction.

Asia-Pacific

In Q3 2023, China witnessed a significant decline in prices for Stainless-Steel Hot Rolled Coils (HR Coils), driven by a complex interplay of supply and demand factors. On the supply side, China's notable increase in stainless steel and nickel production, including new facilities by Tsingshan Group in Indonesia, global nickel supply by Zhejiang Huayou Cobalt Co., and expansions by Huzhou Jiuli Stainless Steel Material Co. and Zhejiang JIULI Hi-tech Metals Co., resulted in an oversupply of HR Coils and nickel. Concurrently, demand from domestic and foreign sectors, including construction and automobiles, dwindled due to economic uncertainties and environmental concerns, further weakening market dynamics. Consequently, Chinese Stainless Steel HR Coil prices fell in the spot market, posing challenges for manufacturers attempting to stabilize prices amidst oversupply and diminishing demand. In summary, Q3 2023 witnessed a sharp decline in China's Stainless Steel HR Coil prices, driven by increased raw material supply, heightened production, and reduced demand from both domestic and international industries.

Europe

In the third quarter, the German market for stainless-steel hot-rolled coils (HRC) observed a significant decline in prices, primarily attributed to limited demand across various industries and an uptick in local inventory levels. This trend was particularly noticeable in the automotive sector, facing intense competition from foreign manufacturers, notably Tesla. Despite efforts by the automotive industry to revitalize the electric vehicle sector, progress was sluggish, prompting both domestic and international buyers to adopt a cautious stance, anticipating further price drops. The supply in the German spot market saw a marginal increase as production stabilized, influenced by reduced consumption in the downstream automotive sector. As demand continued to decrease, inventory levels remained elevated, with hesitant buyers refraining from placing substantial orders in hopes of additional price reductions. The subdued demand in the downstream auto industry, exacerbated by strong competition from foreign manufacturers like Tesla, contributed to decreased interest in flat stainless-steel products. The prevailing market conditions reflected a challenging landscape for stainless steel HRC in the third quarter, characterized by low demand, high inventories, and cautious buyers.

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