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Sentiment for finished steel prices continues to improve in the U.S., S&P Global reported in its latest Commodity Insights U.S. steel market participant survey, as domestic steelmakers announcing price increases as raw material prices continue to rise following Russia's invasion of Ukraine.
S&P Global said 91% of those surveyed expected prices to rise in April, compared with 59% in March, with 40% of those bullish participants foreseeing a rise of more than 5% in finished steel prices, and none expecting prices to fall.
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Most respondents to the S&P Global survey attributed the anticipated price increases to rising scrap prices and the effects of Russia's invasion on the supply chain, while near-term demand also was expected to remain strong.
Scrap prices have been soaring on import disruptions of pig iron and other scrap grades, which S&P Global said has lifted shredded and prime prices in the Midwest by $135/lt and $187.50/lt, respectively, during the March buy week; early indications for April are up $50-$100/lt for shredded and up $100-$200/lt for primes.
J.P. Morgan recently named Cleveland-Cliffs its top pick in the steel sector, as the impact of Russia's invasion is only just beginning to be felt in North America.