CRU: Steel Prices Lack Direction Without View of Demand

By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor

In the U.S. Midwest, sheet prices have continued to strengthen while plate prices have weakened further. HR coil prices increased for the third consecutive week, albeit by just $5 /s.ton to $487 /s.ton. The volume-weighted average of transactions remains below recent mill targets of $500 /s.ton, with the overall range of activity being $460-510 /s.ton. Even so, mills have again raised their price target to $540 /s.ton. Overall spot transaction volume has been low, with buyers continuing to report that business activity is down such that current inventories are allowing them to live within their contracts and only make limited spot orders.