US steel buying patterns shift as prices trend down

摘要

The readjustment in metallics trade flows following the supply shock from the war in Ukraine has caused imported pig iron and prime scrap prices to fall $75-100 /l.ton m/m. With softening raw material costs and sufficient sheet market supply, steel prices have been trending down. After reaching a peak of $1,492 /s.ton on 20 April, the CRU Midwest HR coil index fell $125 /s.ton in four weeks. While demand appears to be steady, rising inventories - as captured by Steel Market Update surveys - plus the spike in amount of material on order seen in March and April could bring supply into a surplus in the near term. Fears of weakening demand, partly driven by component shortages and inflation, could cause sheet inventories to rise faster and put more downward pressure on prices. With domestic lead times shortening and prices falling steadily, buyers have become even more hesitant about imports.