Scrapex Banner
Author: 05 Apr 2012 Last updated at 07:28:57 GMT

US flat steel prices witness downtrend in March

LONDON (Scrap Monster): US flat product prices recorded downward movements in March according to the latest report by MEPS (International) Ltd. Mills failed to maintain selling figures for hot rolled coil at the February level.

Transaction values dropped approximately 7 percent and have been driven down by cheaper scrap values and the anticipated arrival of cheap imports. There is also negative pressure from the construction sector as well as from the distributors. However, general engineering, together with barge making, mining machinery and harvesting equipment, is providing plenty of business for the steelmakers.

The energy, transport, agriculture and earthmoving equipment sectors in the US have good order books, which are expected to become even stronger as the year progresses. This will benefit plate consumption. However, demand from the construction industry remains muted. The prospect of the arrival of cheap offshore plate from Poland and Russia in April is creating downward price pressure.

Cold rolled coil transaction values declined by over 6 percent in March. This was attributed to subdued demand combined with the threat of cheaper imports on the horizon. Buyers were cautious about rebuilding stocks at a time when scrap costs were declining.

US car manufacturers’ demand for coated steel will increase at a time when the outlook for the construction industry becomes more optimistic. Consequently, domestic supply in the general market is likely to become restricted, especially as a number of mill outages are planned for that period. For the moment, coated coil prices have contracted, in line with the cold rolled substrate.

Despite the decrease in selling figures for March, US mills have announced increases for April in an attempt to prevent further price erosion. These are likely to be accepted by the market and result in a firming of transaction values in the short term. However, oversupply could limit the size of any potential increases.

 

METAL PRICE CHARTS

GET PRICE CHARTS

22ct Gold Scrap Price Charts

14ct Gold Scrap Price Charts

9ct Gold Scrap Price Charts

RELATED NEWS

Thailand's scrap imports fell sharply in June '14

August 19th 2014 08:19 AM
Thailand's scrap imports fell sharply in June '14
The latest import statistics indicate that the scrap imports by Thailand during June this year rose marginally over the year

Chinese Ferrous scrap trader halts business as profit slides drastically

August 18th 2014 05:40 AM
Chinese Ferrous scrap trader halts business as profit slides drastically
Jiangsu province-based Fengli Group has halted sale and collection of scrap for the week citing weak demand and low prices

Ryerson says 2Q profit climbed on higher metal prices

August 15th 2014 07:47 AM
Ryerson says 2Q profit climbed on higher metal prices
Ryerson Holding Corp. said profit soared more than 62 percent in the second quarter due to the higher prices for…

Pair accused of stealing scrap metal in Swatara Township

August 14th 2014 03:23 PM
Pair accused of stealing scrap metal in Swatara Township
Two men are facing charges after police say they stole scrap metal from a Swatara Township business on July 19
blog comments powered by Disqus
Next Story