[Steel Price] Subdued Steel market sentiment as summer lull sets in: MEPS

UNITED STATES August 04 2015 9:45 AM

LONDON (Scrap Register): There is downward price pressure in most countries researched, in July. Fierce competition, between both domestic and third country suppliers, is intensifying. The upcoming summer holiday period in some nations is adding to the negative trading environment, said MEPS International.

In the US, steelmakers appear to be bucking the trend witnessed in the global scene. Recently announced price rises are starting to filter through to the market, with increases recorded in local values for some strip mill products, this month.

However, stock levels are elevated and domestic sales volumes are softening. The potential for further advances in transaction figures, in the near term, appears limited. There remains a heightened threat from imports, despite antidumping investigations now under way.

In Canada, the large inventory overhang is taking time to reduce. The domestic market is weak but the number of enquiries is growing. Customers are cautiously optimistic for the future.

In Japan, sales have slowed and inventory adjustment is yet to be completed. Local steelmakers are planning on cutting production, in the July/September period, in a bid to re-balance supply and demand. Import volumes were down and export sales were up, in May, year-on-year.

South Korean producers are supplementing poor domestic sales with increased shipments to overseas customers. However, this is upsetting suppliers in the importing countries and is attracting antidumping filings against them from some nations. Deliveries of third country material into the local market are slowing.