Steel Products
Steel Buyers Hold Modest Inventory Positions
Written by Becca Moczygemba
August 8, 2023
Steel buyers continue to keep a close eye on prices and inventory levels as we head into the last five months of 2023.
Steel Market Update’s latest surveys asked individuals throughout the supply chain when they think sheet prices will bottom. A high percentage of respondents said that prices will find the bottom in August, while others said September or October. Very few thought prices have already bottomed or won’t see the floor until November or later.
Here are a few comments reflecting price sentiment:
“I think there is some wiggle in the price.”
“We are banking on a few more months of downward action, and then a
sort of “bouncing on the bottom” during the winter months.”
“I believe once lead times are into Q4, pricing will be under extreme pressure, seasonal slowdown in automotive, buyers destocking, and mill maintenance finished up.”
“Pricing has edged up but demand is slow.”
When commenting on demand, survey participants overwhelmingly stated that demand is currently stable.
Although there is a positive outlook, buyers are holding modest inventory positions:
“We are actively buying, but only buying what we need and reducing some inventory that we have in excess.”
“I am buying, but buying smaller quantities more often.”
“Only buying to meet backlog.”
“We are still buying hand-to-mouth due to short lead times, decreasing pricing, and in an effort to conserve cash.”
“Working inventory is lower.”
“We are only buying to maintain current inventory levels.”
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]
Galvanized steel demand unsteady amid lingering buyer fatigue: HARDI
Uneven demand for galvanized steel in June reflects a market that remains mired in uncertainty, according to industry sources.
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.
Whirlpool says tariffs will bolster business
“Economically, the business case for products made in the us has become a lot more attractive," the CEO told Fox Business.
Worthington Enterprises buys Elgen Manufacturing
Worthington Enterprises acquires HVAC products maker Elgen Manufacturing.