US market watching for new capacity and trade developments

摘要

US sheet prices are still trending higher, which has supported further gains in raw materials, slabs, and imported steel. Even though HR coil prices have increased 7.4 m/m to $1,655 /s.ton on 16 June, market contacts still report a lack of workable offers, especially given lead times into the fourth quarter and network of Section 232 (S232) tariffs and AD/CVD duties.US buyers have been eagerly seeking offers from Ternium’s new 4.4 Mt/y hot strip mill, but multiple contacts said they have not been able to get quotes. Mexican HR roll prices rose 4 m/m because of supply tightness and also following strong gains in the US market. Though offers have been sparse, we expect the ramp up of Ternium’s HSM as well as other imports due to arrive this summer to weigh on steel pricing.