Hot and cold rolled stainless steel coil prices in the United States are expected to decline further in September, influenced by mills' published alloy surcharges. The MEPS US transaction value for grade 304 cold rolled coil is projected to drop to USD3,270 per tonne, marking a 40-month low. Additionally, the grade 316 alloy surcharge will decrease by USD177 per tonne, bringing the cold rolled coil price below USD5,000 for the first time since March.
A slowdown in purchasing activity was reported by most MEPS respondents in August, as buyers hesitate to build inventories amid uncertain market conditions. This downward price trend is discouraging distributors from purchasing, leading to adequate inventories and short delivery lead times from US mills.
Typically, September is a strong month for the US steel market, with expectations of a 0.25% interest rate cut by the Federal Reserve potentially boosting demand. However, uncertainty surrounding the upcoming US presidential election continues to cloud the market outlook. Meanwhile, optimism exists for the stainless steel bar market, particularly due to healthy demand from the defense and aerospace sectors, despite overall demand remaining subdued.
