CRU: Metallics Prices Succumb to Weakening Demand

The CRU metallics price indicator (CRUmpi) for May fell by 6.6% month over month (m/m) to 331.0, registering its sharpest m/m decline since July 2022. While Turkish demand for metallics has stayed underwhelming due to lower-than-expected reconstruction works, steelmakers elsewhere have adopted a wait-and-see approach until steel prices stabilize.

Sharp reductions in steel prices were observed globally over the past month – whether for longs or for flats – as end-users curbed buying due to weak end-use demand conditions. Meanwhile, cost support to steel prices has also waned, with sharp declines in iron ore and coking coal prices recently. Steel supply has also loosened significantly, so much so that several steelmakers are planning to reduce output. Consequently, metallics bid prices have fallen – more so for scrap than pig iron – forcing suppliers to cut offer prices to support sales.