STEEL MARKET ROUNDUP FROM MEPS
US flat product selling figures continued to advance
significantly, in May, as domestic steelmakers successfully filed trade cases,
giving local producers an opportunity to raise prices with little resistance.
In the latest edition of the International Steel Review, MEPS reported that hot
rolled coil prices, in the US, surged by 18.5 percent, compared with those in
last month’s report. Availability of material has tightened, especially to
non-contract customers. Local producers are reportedly controlling order entry
by introducing quotas for the remainder of the quarter.
US transaction values for hot rolled plate rose sharply, in May. Cold rolled
coil figures surged by 18.2 percent, compared with those one month ago. Market
participants’ remark that a number of local producers have closed their order
books as delivery lead times have been pushed out to between 10 and 12 weeks.
Offshore supply options are also limited due to ongoing trade cases.
Furthermore, the availability of hot dipped galvanised material is almost
exclusively for contract customers, who are reportedly ordering to their maximum
However, MEPS predicts that some of the price increases secured, by US
steelmakers, since the start of the year could evaporate, in the near term. If
domestic selling prices continue to rise, local producers are likely ‘leave the
door open’ for buyers to find new import sources, that are not covered by the
Steel Review - May 2016 Issue
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