Steel Buyers Seeing Lower Foreign Prices

Steel buyers are expecting general economic activity to remain unchanged to slightly better in the next six months. In the December ISM Steel Buyers Survey 63.6 percent expect conditions to remain the same while 36.4 percent of those surveyed expect improvement. This compares to 66.7 percent and 26.7 percent, respectively, last month. Sales and production rates are expected to improve, jumping from 33.3 percent in November to 54.5 percent in December.

More buyers expect to depend on off-shore sources in the next six months, up to 33.0 percent from 25 percent in November. Mills are offering prices that are well below domestic prices said 45.5 percent of steel buyers, up from just 6.7 percent in November. Foreign mills are also more active in seeking us business.