The US sheet market will likely remain flat to down for the balance of the year, in the absence of significant capacity cuts, market sources tell Kallanish.

One service centre executive says pricing will remain depressed until at least next year unless the on-going labour negotiations between the United Steelworkers (USW) and US Steel and ArcelorMittal result in a work stoppage. Both mills have agreed to allow union members to work under the terms of their previous contracts, which expired 1 September, while negotiations continue (see separate article).

A broker says hot-rolled is currently holding in the $450-460/short ton range for most buyers, though $440/st is attainable with above-average tonnage or buyer relationships. It’s only a matter of time, however, before smaller or less well-connected buyers start clamouring for $440/st, he adds.

“All the little guys, they’re going to say, ‘What about us?’” he says.

A West Coast buyer tells Kallanish that he recently purchased several rail cars of hot-rolled at $450/st. That number is unlikely to rise until the outstanding trade cases against foreign hot-rolled, cold-rolled and coated steel begin to block imports next year, he cautions. Exactly when that happens next year remains an open question, he adds.

“It’s coming,” he says. “I just can’t tell you when.”