Stainless steel imports are on the rise as S&P Global’s US manufacturing PMI fell to 52.7 in June from 57 in May.
Stocks of stainless steel, especially hot rolled and cold rolled coil, have increased rapidly over the past few months.
The combination of increased domestic supply and higher-than-usual imports has resulted in many stores and service centers describing their stock as “bloated”.
Section 232 shielded American steelmakers from overseas competitors for many years. However, local supply restrictions coupled with rising stainless prices in North America have resulted in a large number of buyers purchasing materials from overseas suppliers, especially in the past 12 months.
The latest estimates show that in the first five months of this year, imports of stainless steel flat products are up nearly 120% year on year.
The latest estimates show that in the first five months of this year, imports of stainless steel flat products are up nearly 120% year on year.
As a result, American stainless steel makers are placing fewer orders and reducing lead times.
Buyers who have not been able to get a new product from CRC plants in recent months are now offering tonnage.
In addition, the supply of excess primary and secondary volumes from manufacturers has increased significantly over the past few weeks. This once again confirms the weak portfolio of orders.
Resale prices and margins fell sharply as inventories increased and buying activity declined.
U.S. stainless steel mills, buyers reported they saw lower base coil prices in addition to the recent reduction in monthly alloy surcharges.
While US stainless mills have yet to make official announcements, buyers report that they are also experiencing lower base coil prices in addition to the recent reduction in monthly alloy surcharges.
Prices are likely to continue to experience downward pressure as businesses try to cut high-value and deferred inventories.
Stainless steel prices in the US are currently significantly higher than in Europe and Asia. The average Asian price of MEPS 304 CRC in July was nearly US$2,000/tonne lower than the corresponding price in North America.
Post time: Apr-24-2023