US Steelmakers Cut Prices to Compete With Cheap Imports

by on
Coiled steel for import

US steelmakers slashed prices in February to cope with a flood of steel imports bolstered by the strong dollar, a move that will pressure their profit margins and reduce costs for buyers of steel, including automakers.

Free Download: Trade Automation Locks in Shipping Costs for All Your Imported/Exported Goods

Imports rose 33% in January compared with the year before, according to figures released Wednesday by the American Iron and Steel Institute, reaching 3.85 million tons, compared with 2.9 million tons a year earlier. The jump in imports comes as oil and gas drillers cancel orders for steel pipe, underscoring the resilience of overall US demand compared with other markets.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India hit a high price of CNY 450.00 ($71.90) and a low price of CNY 445.00 ($71.10) per dry metric ton. Chinese slab finished the day down 0.4% to CNY 2,460 ($393.07) per metric ton. Chinese HRC stayed flat at around CNY 2,530 ($404.26) per metric ton.

The cash price of steel billet remained essentially flat on the LME at $305.00 per metric ton. The 3-month price of steel billet flattened at $305.00 per metric ton after two days of downward movement on the LME.

US HRC futures contract spot saw its price drop 4.4% to a 30-day low of $503.00 per short ton yesterday. The US HRC futures contract 3-month price rose 1.0% on Monday, just off the 30-day low of $515.00 per short ton it hit on Thursday, February 26.

{Comments Off on US Steelmakers Cut Prices to Compete With Cheap Imports Comments Off on US Steelmakers Cut Prices to Compete With Cheap Imports}