CRU: Sheet Markets Steady in U.S. and Europe, But Asia Still Bearish

Sheet prices in the U.S. Midwest market fell by $5-9 /s.ton, w/w with HR coil losing the most, assessed at $560 /s.ton. These prices reflect transactions from last week, which were primarily conducted ahead of recently announced mill price increases. While prices fell, the overall volume component fell at a faster rate. Until the price increase was announced, prices had been on a downtrend as service center buyers continued to limit purchase activity, with near-term demand well-covered by inventory or material already on order. The mill price increase comes ahead of somewhat bullish expectations for the March scrap settlement. Overall, steel market participants remain concerned about domestic and regional industrial activity as well as how forthcoming supply chain disruptions may affect end use demand.

USS-POSCO Industries (UPI) announced a $40 /s.ton price increase for all sheet products, which was in line with Midwest mill price increases. California Steel Industries (CSI) closed its April book on March 3. Customers are speculating CSI may announce an increase when its May order book opens. Due to longer lead times, price increase announcements and strength in the construction market, imports are becoming more attractive, particularly for HDG coil. Several companies reported they are expecting import shipments between April and June. Customers expressed hope that U.S. Steel’s buyout of POSCAL’s 50 percent ownership of UPI, which was finalized Feb. 29, and its involvement in Big River Steel, will lead to opportunities for new product availability and quicker lead times.