United States’ mills list prices for domestic steel beams have held their ground even with mills offering rebates, while prices for imported product have fallen, sources said, noting the steel industry is seeing steady to improving demand.
***price assessment for steel beams
Fastmarkets’ monthly price assessment for steel beams 8 x 8-inch, fob mill US held at $35.25 per hundredweight ($705 per short ton) on Thursday July 30, unchanged for a third consecutive month. Prior to the April 30 assessment, prices had been flat at $36.50 per cwt since January 30.
Fastmarkets assessed steel beams medium sections, loaded truck Port of Houston for immediate delivery at $630-650 per ton ($31.50-32.50 per cwt) on Thursday, down by $20 from $650-$670 per ton the prior month – a level it had previously maintained since April 30.
Lead times have extended to four to six weeks, according to market participants, who also uniformly noted that mills’ nominal domestic prices were unchanged although some did indicate pressure on those prices.
“Basically beams are selling under [the] mill book price,” a southwestern service center source said.
One southeastern distributor was baffled, indicating that while mills were maintaining list prices, they also were offering rebates that “do not make economic sense.”
This source wondered how mills could make a profit at such price levels. “They are apparently living on rebates,” he said.
The southeastern distributor also noted several European import orders at prices well below domestic prices. The most recent import is at the dock to be distributed to his warehouse and more European shipments are arriving in early fall.
“These are not huge orders,” equivalent to about one month’s inventory of steel beams, he said.
A southwestern trader, however, said it did not make economic sense for European steelmakers to export to the US.
***US tariff
“I can’t imagine any European mill could do it with the 25% tariff, since prices in Europe are pretty firm as I heard. The supplier would have to absorb a lot,” this source said.
A southern trader indicated a backlog in orders for lower-priced imported beams that do not face a US tariff.
Demand for steel beams was described as flat to improving.
“Business has picked up. It’s been a very, very good June – near double or more last… June,” a western fabricator source said. “Do-it-yourselfers are doing a lot of little home improvement projects.”
An eastern fabricator source also noted strong business. “We have a good back log. We have plenty of work. I need steel,” he said.
The outlook is “very, very good,” the same source said, noting that his company did not register a big drop in business during the early months of the Covid-19 pandemic lockdown in his state.
A southern service center, however, disagreed.
“Demand remains weak,” he said, but added that there are early signs that automotive “is back up and running” and he expects demand from the automotive sector to “have an effect once they really get going.”
این مطلب بدون برچسب می باشد.
ثبت دیدگاه