CRU: Steel Buyers Focus on Domestic Negotiations and Inventories

US sheet prices continue to slide, and the weakness in the domestic market has buyers confident that they can get domestic suppliers to negotiate. For hot-rolled coil, imports have not been very advantageous relative to futures. There have been some workable offers for tandem mill products. But buyers have been more inclined to buy domestically or from Mexico and Canada. Buyers seem to be reluctant to place import orders because domestic prices continue to fall as demand softens.

In the US longs market, wire rod consumers are still working through high inventories. Wire rod imports hit the highest level for the year with ~177,000 metric tons imported in July. Import volumes fell off dramatically in August with 70,000 tons of wire rod imported, and volumes are expected to remain low as manufacturers work through their inventories. Despite attractive import offers, buyers are avoiding placing orders for import or domestic material.

Estelle Tran

Estelle Tran is a senior analyst at CRU based in Pittsburgh. Estelle joined CRU as a steel and ferroalloy prices analyst in October 2017. She is the main contact for data providers who contribute to the CRU Midwest flat-rolled steel indices. She is also the editor of the Steel Monitor and analyzes the monthly service center inventories report for Steel Market Update. Prior to joining CRU, Estelle worked at S&P Global Platts, reporting on flat-rolled steel, long steel, primary aluminum and trade issues. She earned a B.A. in English writing and history from the University of Pittsburgh. Estelle is also past president of the Pittsburgh chapter of the Association of Women in the Metal Industries and the Northeast regional vice chair.