The US steel mills have continued to increase production capacity despite of poor demand. As a result, it’s predicted that the prices of steel flat product would drop further in the US market in July.
It’s known that the US’s automobile output declined since March due to lack of components; however, the US steel mills increased the production capacity instead of adjusting it to fit the market situation.
Consequently, the oversupply has depressed the steel flat product prices.
Distributors predicted that the prices of hot rolled coils would drop further by US$20~US$40/ton in July unless the automobile industry increases the production substantially in the Q3.
( Source: www.yieh.com )