CRU: U.S. Buyers Seek Import Options Amid Extreme Supply Tightness

By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service

U.S. steel service center inventories continue to remain low in terms of material in stock, as many buyers reported that they cannot secure all the sheet steel they require. Steel Market Update, which is owned by CRU, reported service centers carried 51.3 shipping days of supply of sheet at the end of December, which was down from 62.9 shipping days of supply in December 2019. However, service centers also have record levels of material on order, according to the SMU data, though when factoring the seasonal increase in shipping levels expected in January-February, inventories are still lean at 40-43 shipping days of supply. Strong bookings extended sheet mill lead times out to 6-12 weeks, depending on the product and mill. Late last year when service centers were panicking about covering customer requirements, buyers looked to offshore options to secure material. However, now that prices are nearing the peak, many buyers are finding that import options are limited and are avoiding placing orders that are not pre-sold.