Chinese cold-rolled sheet metal is being offered at increasingly competitive prices, according to a recent report from American Metal Market (AMM). The material can now be obtained at a steep discount to domestic product, which industry experts say is largely due to recent oversupply and overall slowing demand in China.
Much to the surprise and frustration of the manufacturing sector, Chinese cold-rolled prices are even lower than hot-rolled sheet prices in the U.S. This is cause for some concern, as transactions from other foreign mills are now being negatively affected because buyers are bargaining down prices.
China’s share of the U.S.’s cold-rolled market was lower between 2006 and 2009; but with 113,103 tonnes of Chinese cold-rolled sheet arriving in the U.S. during the first half of 2012, China could be looking at an upswing.
While China’s exports are causing frustration in the U.S., China itself may not be making much of a profit – demand is extremely weak there, as are prices. Chinese mills continue to compete with each other for the U.S. manufacturing sector, and many are not seeing much return on their cold-rolled investment and efforts.
Data from AMM.com