The steel market in March

摘要

Strong demand and, for the present at least, tight supply, have supported a surprise rise in coil prices. This is no more than the steel companies forecast, but traders and service centres were sceptical until now. Their scepticism probably helped to feed the price revival as it meant that they have been keeping inventories lean, and have had to ask mills to top up supplies to meet their rising orders. Long product prices have been more stable, but now beam producers could face higher imports from Asia as the ITC has revoked AD levies dating back to 2000. Medium and long term worries remain in the US The price rises have given many service centres immediate worries. They were so sure that mills would have to cut prices as imports rolled in - and so uncertain of the strength of end-user demand - that they opened second quarter order books at first quarter prices or even granted discounts on these. Now they are battling to restore margins. Longer term worries remain. The high dollar, as the associated trade deficit continues to threaten the general health of the manufacturing industry on which most domestic steelmakers ultimately depend.