Although US domestic wide flange beam (WFB) transaction prices have gone through three consecutive $1.00 cwt. ($22/mt or $20/nt) decreases since mid-April, the moves have done nothing to clean up discounting in the market. Small to medium-sized distributors can still purchase beams from larger distributors at or slightly below published mill prices--which are now $37.25 cwt. ($821/mt or $745/nt) ex-mill--indicating that many larger distributors are booking for around $1.00 cwt. less than list prices. However, sources tell SteelOrbis that mills seem to be fine with this arrangement, as it allows them to boost their margins whenever other, non-discounted distributors buy from them.
Additionally, US domestic mills are not currently under threat of import competition, as import offer prices are not attractive enough. While at least one beam off from Europe was heard as high as $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck to the East Coast, lower offers of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck to the Gulf Coast from Spain and to the West Coast from Korea are more common. However, even lower offers are not enough to spur much activity considering how tepid demand is currently for beams. While there are some infrastructure projects in the works, major funding for much-needed improvements--the bridge collapse in Washington last month should have been, but wasn't, a wake-up call--is not on the horizon.