The opinions expressed in this report are those of CRU Group and are considered market commentary. They are not intended to act as investment recommendations. Full disclaimers are available at the end of this report.
U.S. sheet prices fell again m/m in August as supply availability continued to outstrip demand. While m/m falls in HR coil pricing were notably slower than the prior month, we are beginning to see more downside pressure mounting on CR coil and HDG coil. Much like July, the key drivers of this supply/demand imbalance were inventory levels, increasing mill competition, cooling demand, and falling raw material costs. Still, we expect price falls to slow once again, and perhaps stabilise briefly, in September as they near more historical spreads over costs and global prices.
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