CRU: Sheet Prices Fall in Most Markets on Weakening Demand

By CRU Senior Analyst Ryan McKinley from CRU’s Steel Sheet Products Monitor

Falling demand in most markets around the world has continued to weigh on steel sheet prices. Meanwhile, the announcement that the USA will remove Section 232 tariffs on steel and aluminum producers in the EU and replace them with a quota system means that imports are even more viable for U.S. importers. At the same time, rising inventory levels and slowing demand have already caused domestic HR coil prices to fall. Conversely, this announcement means EU producers will have an outlet for material that has not yet been placed in their domestic markets, and market sentiment is growing more bullish as a result. The largest sheet price decreases this week occurred in China, where easing electricity shortages has allowed for higher steel production even as end-use demand evaporates. Chinese traders are now offering material into other markets in Asia, causing import prices in those countries to fall. The exception to this was in India, where low import levels have allowed for a small increase in prices.