US sheet buyers facing dilemma as mills push contract changes

摘要

Houston—US sheet buyers are facing a dilemma as mills look to reset contracts with a variety of options for 2021. The sea change in contract structure was leaving many buyers uncertain about what would keep them competitive next year. Buyers’ anxiety was only exacerbated by the fact that many remain steel short with mill availability sparse through the end of the year and hot-rolled coil prices up nearly 60% since August. The average US mill lead time for HRC was at 8.6 weeks, longer than at any point during the 2018 supply crunch related to the Section 232 tariffs, according to S&P Global Platts data.