Tag Archives: Coil

US Coil Prices Soften, Plate Values Steady

US strip mill product prices fell, in the past four weeks, according to MEPS. Hot rolled coil is readily available, from both local and offshore suppliers. Domestic delivery lead times are between two and four weeks. A number of US steel buyers remark that local producers and several Canadian steelmakers continue to offer material at slightly reduced price levels, in an attempt to secure orders.

Cold rolled coil buyers were successful in securing discounted deals from domestic mills – after achieving price reductions on hot band material. Many US producers lowered prices, in an attempt to secure orders, amid stronger foreign competition. Small pockets of material from Russia, Egypt, Canada, Mexico, South Africa, Malaysia and Thailand are available in the domestic market.

Demand from the automotive sector has slowed down, albeit from record levels. Local hot dipped galvanised producers are willing to offer reduced prices, in an attempt to secure orders. Delivery lead times are between five and seven weeks. A shortage of competitively-priced offshore options persists.

The upward trajectory of US hot rolled plate prices stalled, as local values were unchanged, this month. However, the domestic mills could announce a list price hike, in the near term. Healthy demand from the construction and energy sectors and tight supply conditions could assist mill attempts to solidify previous price gains. Domestic delivery lead times are projected to extend, in the third trimester, as several US plate producers plan maintenance outages. Availability of offshore hot rolled plate remains limited as a result of trade cases.

Source: MEPS International Steel Review – May 2017 Edition

BRAZIL STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

Underlying demand continues to be weak, in Brazil, according to MEPS. Hot rolled coil stockists are now predicting that domestic suppliers will roll over their transaction values in the next trading period.

Negative price sentiment persists in the commodity plate market. Steel intensive industries continue to press their domestic suppliers for lower transaction values. Meanwhile the Secretariat of Foreign Trade has initiated antidumping investigations regarding imports of hot rolled carbon steel plate from China.

Cold rolled coil traders expect their domestic suppliers to maintain their pricing positions in the next trading period. INDA has reported that imports of cold rolled coil increased, in May, by 6.1 percent month-on-month. The majority of this material was sourced from China.

The business environment in the wire rod market has become more difficult than it was at the beginning of the year. Local traders plan to persevere with cautious procurement strategies next month as a result.

Tough trading conditions persist in the structural sections market. The distribution network continues to be weighed down by high inventory levels and weak trading volumes. Similarly, merchant bar prices continued to be hampered by weak market fundamentals.

Source: MEPS – Developing Markets Steel Review – June Edition