Steel sheet hits bottom in oversupplied market

May 06, 2013 | 02:30 PM | Catherine Ngai

Tags  sheet, steel, scrap prices, Severstal, service center, margins, overcapacity, Catherine Ngai

PITTSBURGH — Domestic steel sheet prices appear to have hit a bottom, sources said, but an oversupply of material continues to stymie any upside despite what distributors and mills report to be stable demand.

"People are all busy. Everyone’s business is good, but it’s just that everyone is struggling with margins," one Midwest service center source said. "The mills are drawing the line in the sand that we’re at the bottom. No one is coming out and predicting a price increase, but no one is budging for lower numbers."

Sources said hot-rolled band prices remained steady this past week, with most buyers and sellers pegging spot prices at $29 per hundredweight ($580 per ton) f.o.b. Midwest mill, although a number of sources reported larger-tonnage transactions at closer to $28.50 per cwt ($570 per ton).....

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