In Q1 2024, prices for Hot Dip Galvanized (HDG) steel coil fluctuated across global markets, with some regions seeing increases driven by strong demand and recovery in key sectors such as automotive and construction. However, other areas experienced price corrections due to oversupply or weaker demand. In UK, HDG prices rose by 9%, primarily due to higher energy costs, increasing raw material prices, and reduced steel production capacity. In contrast, the HDG market in India and China saw a quarterly decline during the same period.
In Q2 2024, global prices for Hot Dipped Galvanized (HDG) Coil saw a decline after the price fluctuations in Q1. However, regional markets exhibited varied trends, influenced by local demand, production conditions, and economic factors. The US and UK markets experienced a significant drop in HDG prices, mainly due to weaker demand, an oversupply of steel, and reduced industrial activity. Contributing factors included persistently high interest rates, which slowed investment in infrastructure and construction, along with lower production levels and a drop in crude steel manufacturing. These challenges led steelmakers to adjust their prices downward, amplifying the bearish outlook across these regions.
In Asia, prices also softened, with India seeing a modest 2% decline, driven by a slowdown in domestic demand and competitive pricing pressures from imports. In China, prices fell by 5%, as the market faced reduced demand from key sectors like construction and automotive, while steel production remained high, further contributing to the oversupply. Additionally, logistical disruptions, trade uncertainties, and fluctuating raw material costs added to market instability, affecting pricing dynamics globally. As a result, HDG steel prices faced downward pressure in several key markets during Q2 2024.
In Q3 2024, prices for Hot Dip Galvanized (HDG) Coil saw a decline across major economies. Domestic HDG prices dropped by 3% in India, 10% in China, 12% in the USA, and 2% in the United Kingdom. Sluggish demand from key sectors like automotive and construction, alongside an oversupply of steel, put significant downward pressure on prices. High interest rates continued to limit investment and financing, leading to slower economic activity and reduced industrial output.
In China, a sharp 10% decline in HDG prices was driven by weaker demand from both the construction and automotive sectors, combined with overproduction in the domestic steel market. In the US and UK, the 12% and 2% price drops were attributed to softening demand, along with logistical challenges and inventory imbalances.
In Q4 2024, Hot Dip Galvanized (HDG) Coil prices saw a decline in a few markets. The market remained under pressure from an oversupply of steel and fluctuating raw material costs, which limited any substantial price recovery. In India, domestic demand, particularly from infrastructure projects, helped maintain some price stability. However, competition from imports and ongoing global trade uncertainties kept prices relatively flat. While there was some recovery in certain regions, the overall market remained cautious, impacted by continued economic concerns and imbalances between supply and demand.
