By Paul Ploumis 10 Sep 2015 Last updated at 01:57:05 GMT
The hot-rolled and cold-rolled sheet prices weakened further on low demand and increased supply.
SEATTLE (Scrap Monster): According to market sources, the prices of hot rolled and cold rolled sheet steel prices in the US continued to decline further. Falling market demand amidst increased supply is cited as the main reason for the fall in sheet steel prices.
Hot-rolled transactions ranged between $440 per short ton and $460 per short ton ex-works. Low volume buyers are being offered the price of $440 per st by mills. However, mills are seen settling to offer HRC at $440 per st for high-volume buyers. Market sources indicate that mills will be forced to offer lower prices as demand continues to remain significantly weak.
Sources indicate that $460 per st is being used as a list price. Although some mills may still be able to achieve this price for truckload-volume orders, majority of the buyers are seen negotiating for $440 per st, especially if the order size is anywhere near to 1,000 short tons.
The sheet steel demand from the automobile and construction sector has shown significant improvement during recent times. However, general-end user buying has slowed down considerably. The demand from agriculture sector continues to remain subdued, market participants noted. The abundant supply from domestic mills coupled with spiraling imports is likely to keep the sheet steel prices under pressure.
Meantime, cold-rolled prices too declined further to range between $560 per short ton and $580 per short ton ex-works.