As expected, the housing slowdown has been a double blow to the steel industry, reducing demand for direct use in dwellings and demand for steel among appliance makers. The latest report from the Association of Home Appliance Manufacturers (AHAM), covering business in May, showed volumes more than 11 percent lower than a year ago. All these manufactures are big users of high value carbon steel products - plain galvanised and pre-painted coil and higher quality wire rod. Given that general retail spending in the USA slumped in June, manufacturers may find they have too much stock on their hands and cut production again. Meanwhile, steel supply is increasing; utilisation in the first half of July this year has been higher than in any week of July last year. While imports as a whole are lower than last year, May landings showed big increases on April. With higher supplies on offer at the beginning of what is in any year a slow quarter, spot prices were sure to continue their slide, especially as stocks of steel at service centres are ample.
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