Demand for steel is still strong

According to recent news from the American Metals Market (AMM) bulletin, demand for strong sheet steel is still high. So far in July, interest has remained steady, and end-use markets have been providing a large percentage of the optimistic sentiments surrounding the metal.

In an interview they conducted recently with a Midwest service center source, business is good and has been steadily improving since May.

Hot-rolled brand prices remain little changed, holding at $32 per hundredweight (or $640/ ton), and cold-rolled coil is slightly up at $37.50 per cwt.

Marketing and steel factory leaders are speculating that the recent strength of steel is due in large part to supply side disruptions, such as the as yet unresolved lockout at the U.S. Steel Corp.’s Lake Erie Works location in Nanticoke, Ontario. Another key factor this week is the accidental outage of a blast furnace at AK Steel Corp’s OH-based company.

Slimmer inventories overall have also meant a modest spike for sheet demand and prices, as mills have eagerly been getting in on the positive sentiment.

Manufacturers and sellers continue to look towards September as another key date for steel price and progress assessment.

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