CLF – we like our steel now 💎🙌🚀
U.S. is the world's most-expensive steel market, steel prices are high overseas at the moment too, discouraging buyers in the U.S. from pursuing imports. Spot-market prices for hot-rolled coiled steel in Southeast Asia are $900 a metric ton, and the cost of a shipping container has more than doubled since the start of the year.
Imports, which typically make up about a quarter of the finished steel consumed in the U.S. annually, last year accounted for 18%, the lowest share since 2003, according to the American Iron and Steel Institute. So far this year, imports have been running at about the same rate, the trade group said. U.S. tariffs, high prices and growing demand for steel in foreign markets are holding down import volumes.
Cleveland-Cliffs Inc. is keeping about seven million tons of production capacity out of service. That is roughly a tenth of domestic consumption in 2019, according to Metal Strategies Inc., an industry consulting firm.
Steel prices, meanwhile, have reached records. Spot-market steel prices have climbed more than 60% since the start of the year to more than $1,600 a ton, according to S&P Global Platts.
TL;DR – Steel companies are share price has been reflecting this demand. Suppose you look at NUE, X, MT over the past year. CLF is finally getting its due diligence, and its share price reflects the steel market demand!
Submitted June 10, 2021 at 02:01PM by r2e