SOFT CONDITIONS PERSIST
IN US STAINLESS STEEL MARKET, MODEST UPTICK FORESEEN IN 2017
According to MEPS, demand
for stainless hot rolled plate is weak, in the United States.
Sellers are trying to undercut each other in order to secure sales.
North American fabricators are losing work to competitors in Turkey.
However, the number of purchase enquiries is beginning to increase
and supply chain participants are cautiously optimistic about
business prospects for 2017.
Supply chain participants report a slowdown in stainless cold rolled
coil order activity since the end of September. Buyers are
monitoring their inventories and purchasing only for their immediate
requirements. The upcoming presidential election is fostering
uncertainty. Basis values are quite stable. Alloy surcharges, for
austenitic grades, fell, in October, but will recover in November.
The stainless steel bar market is very quiet, in the United States.
Demand will continue to be affected, in the medium term, by subdued
activity in the energy sector. Buyers are also cautious due to the
imminent presidential and congressional elections. Basis values are
holding up because sellers realise that cutting prices will not lift
sales volumes. New, third country suppliers - mostly from Asia - are
trying to gain a foothold in the US market but they are struggling
due to poor demand.
Source: MEPS -
Review - October Issue
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