Hot Rolled Coil Prices
Earlier last week Platts published European hot rolled coil prices at $434 per net ton. This put the price per ton up $11 from 2 weeks prior, and $14 from one month prior. When calculating import costs, that increases European prices to $524 per net ton when delivered to the US. The $90 in import costs includes things like freight costs, handling, trader margin, etc.
The latest average hot rolled coil price for domestic US steel is $590 per ton.
Scrap Metal Prices
Scrap price sources have estimated that there will be a weaker scrap market in this upcoming month of September with prime grades feeling the most pressure. Sentiment is going down about $10-20 per gt on bush and bundles and cuts and shred will also see either flatten with pricing or slightly decline. The correlation for price decreases of scrap are aligned with slowing domestic steel mill production along with raw material inventory reductions as the key drivers.
Steel Service Center Reports
The Metal Service Center Institute (MSCI) reported on inventory and shipment stats over the month of July. The US steel shipments for all steel products through the month were 2,918,700 net tons. As for inventories at the end of the month of July, 7,847,500 tons was recorded bringing steel up 2.7% from the month prior.
Shipments for July 2016: 1,999,200 tons
Inventory for July 2016 (end of month): 4,973,500 tons
Shipments for July 2016: 246,400 tons
Inventory for July 2016 (end of month): 857,600 tons
Pipe and Tube
Shipments for July 2016: 173,300 tons
Inventory for July 2016 (end of month): 510,300 tons
Source: Steel Market Update