Steel Products Prices North America

Fitch Ratings Upgrades Outlook for Global Steel Sector
Written by Laura Miller
June 28, 2023
China’s recent reopening, coupled with increased government spending on infrastructure, has led Fitch Ratings to upgrade the outlook for the global steel sector from deteriorating to neutral.
The New York-based ratings agency revised China’s steel sector outlook to neutral as well, according to a research note sent to SMU.
China’s “stronger-than-expected infrastructure growth and a seasonal construction pick-up in 3Q ‘23 will increase steel demand,” which is driven by the construction sector, Fitch stated. It believes Chinese producers will maintain current production volumes through the uptick in demand.
In the US, “meaningful consolidation” in the steel industry has led to improved supply discipline, Fitch said. Investments within the industry are reducing costs and adding production value, leading “to generally higher and more stable margins through the cycle.”
Recent government spending initiatives by the US government – specifically the Infrastructure Investment and Jobs Act, US Inflation Reduction Act, and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act – will support US steel demand going forward, Fitch predicted.
In Europe, market sentiment is improving after the high energy prices and resulting reduction in industrial activity seen in the second half of 2022.
Steel prices there have been supported by disruptions on the supply side, among them the reduction in semi-finished steel exports from Ukraine and Russia, as well as Turkey’s massive earthquake.
“Even though the recovery in European steel demand remains fragile, steelmakers’ earnings per tonne remain reasonable, supported by contracted volumes with more stable prices than on the spot market,” Fitch stated.
By Laura Miller, laura@steelmarketupdate.com

Laura Miller
Read more from Laura MillerLatest in Steel Products Prices North America

Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.

SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.

SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).

Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.

SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.