International Steel Market Daily: U.S. Steel Prices Fall

U.S. steel prices fell to their lowest point in half a year (2023.8.7).
The mainstream hot coil price in the United States is 870 US dollars/ton, a month-on-month decrease of 60 US dollars/ton, and the price has fallen to the lowest point in half a year. Since June, the demand for downstream steel in the United States has begun to show a weak trend. The delivery time of new orders for hot coils from steel mills is generally 5-6 weeks. However, since late July, due to the decrease in downstream orders, the delivery time of some steel mills has been reduced. shortened to 4-5 weeks.

On the supply side, U.S. crude steel production showed no signs of declining, with crude steel production in the last week of July at 1.749 million short tons, almost flat compared to the same period last year. In terms of consumption, according to data released by the American Automobile Dealers Association, the seasonally adjusted annualized sales of new light vehicles in the United States in July reached 15.74 million (15.7 million last month), an increase of 18.3% over the same period last year (last month was 20.2%), maintaining year-on-year growth for the 11th consecutive month. However, improving automobile consumption cannot support the demand for steel in the United States. According to data released by the Institute for Supply Management (ISM), the U.S. PMI in July was 46.4, which has been below the line of expansion and contraction of 50 for nine consecutive months, and is the most extended shrinking cycle since 2009. Therefore, the U.S. manufacturing industry as a whole remains In the stage of sluggish recovery, the pessimism of large steel processing centers is intense, and most businessmen believe that there is still room for downside in U.S. steel prices.