Demand and prices stable in the US WFB market

Friday, 23 March 2012 01:11:32 (GMT+3)   |  

In a much-expected move, US domestic wide flange beam (WFB) mills kept transaction pricing stable for April shipments after shredded scrap reflected a similar trend this month, and sources tell SteelOrbis that most spot prices are still far beneath published prices.  WFB buyers can still book for approximately $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt) below the published range of $42.00 cwt. ($926/mt or $840/nt) ex-mill (for ASTM A992, W10 x 10, W18 x 6, and W24 x 7).  Demand for beams in the US is also stable, and many construction market indicators suggest increased activity going into Q3--however, because beams are usually a small portion of most long product distributors' overall product range, even a decent boost in demand will only firm up spot prices a little, if at all.

Import activity, on the other hand, is still lackluster to say the least.  Because most import prices are still hovering just above US domestic published prices, US buyers are not exactly interested in offshore product.  Offer prices from Spain are reportedly still $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt) DDP loaded truck in Gulf Coast ports, while Korean offer prices are still $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) DDP loaded truck in Gulf Coast ports--with inquiry activity for both virtually nonexistent, according US traders.


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