New York — US steel market participants continue to expect firmer finished steel prices as April begins, according to the monthly survey of the market by S&P Global Platts.
In the survey of US producers, distributors, traders and end-customers conducted leading up to April, the index for finished steel price development remained mostly stable at 69.0, from 69.6 in March, indicating continued expectations for increases in the month to come.
Each respondent group, aside from the traders, were bullish about April finished steel prices, posting an average of 75 from distributors, mills and end users. Traders posted an average response to the finished steel price development index of 55.6.
Participants still expected steel production to see some slight increases as well, with the index averaging all groups at 58.6, up slightly from 56.25 in March.
April raw material price sentiment was split, with mills and traders significantly bearish posting 37.5 and 22.2, respectively. Meanwhile, end users responded with 75 and distributors 65.4. Still, comments received across all groups reflected the prospect of lower obsolete scrap pricing while prime grades are expected to remain firm.
The expected finished steel inventory level index was the first of the four measures to dip below 50 in 2021, meaning respondents expect inventories to move lower on average, and it remains bearish in April. The April finished steel inventory level declined to 44, down from 45.5 in March. "The market is remaining tight through June," said one distributor.
Source : https://www.spglobal.com/platts/en/market-insights/latest-news/metals