US STEEL MARKET ROUNDUP FROM MEPS
US hot rolled coil transaction numbers have moved down
slightly since August. Service centre business is reasonable but inventories are
more than adequate for now, so mill order entry has slowed. Many buyers believe
that by November the market will be susceptible to more price decreases. There
are few offshore offers at present.
The US plate mills have hung on to the small rise they implemented in August.
Service centre business levels are reasonable but, as inventories are
medium/high, buyers do not need to order at present. This could eventually cause
mill delivery lead times to shrink. Customers are anticipating a ‘year-end sale’
in December for large purchases. Foreign offers are scarce. There is some
thinner material from Taiwan being quoted at around $US780 per tonne for
A strong US auto sector is generating increased order volumes for cold rolled
and galvanised coil. However, in the general market, consumption remains muted.
Now that supply has been restored, we are starting to see some negative pressure
on transaction numbers.
US wire rod transaction values have weakened since August, amidst mediocre
business levels and competition from offshore, especially from China. A proposed
August price rise failed to be implemented.
Several US beam makers announced that they would maintain August list prices
into September. This move is reflected in current market transaction values.
Demand is flat and recent import competition has not gone away.
Rebar transaction values have not changed in the US.
However, the recent filing of trade complaints against Turkish and Mexican
suppliers could well ease the present import pressure. Buyers report that the
demand situation is lacklustre with material readily available on relatively
short lead times.
Free Sample copies
of MEPS Reports
the latest copy of International Steel Review here
up for free MEPS steel news alerts