Last week’s price increase announcement by
US domestic
flats mills has failed to generate robust interest in
US import hot dipped
galvanized and Galvalume coil bookings from offshore producers.
US domestic spot market prices have begun to firm in the past seven days, according to sources close to SteelOrbis, but domestic buyers “are not rushing out to buy speculative tons.
Coated steel inventories are starting to thin but I don’t know of anyone who is in a dire, need-to-buy-now situation,” one source said.
Indian
coated steel producers, who received relatively light preliminary antidumping margins in the still-pending trade case have continued to try to push tons to
US-based buyers, but buyers continue to have little interest in booking
coated steel futures from Indian steelmakers.
Part of this relates to lack of need, sources say, but a second part of the reluctance to look offshore relates to skepticism that current
US spot prices will continue to firm. As previously mentioned,
US domestic scrap prices may have settled up by approximately $20.32-$25.40/mt ($20-$25/gt) in most regions of the
US during the month of January but many have begun to question whether February scrap prices will remain strong. Although recent data from the American Iron and Steel Industry (AISI) indicate that domestic steel production has trended up 3.6 percent week-on-week, production capacity is still down 9.3 percent year-on-year.