US steel mills plan large-scale repairs, reducing production or supporting subsequent prices of hot coils

Recently, there have been rumors in the market that a large number of steel mills in the United States are planning to shut down for maintenance in the spring of 2024. It is expected that multiple steel mills located in the Midwest and South of the United States will plan to shut down for maintenance in March, April, May, and June. At present, we has learned that some steel mills have clearly announced the cessation of SPFH490 steel production.

This maintenance shutdown will to some extent reduce the production of hot coils and provide support for the subsequent prices of hot coils, slowing down the current downward trend of hot coils in the United States. Some hot coil SPFH490 steel dealers have expressed their hope that the impact of this repair on the market will be higher than last year, providing a certain buffering effect on the market. They also anticipate a significant rebound in US hot coil prices by the end of March and early April.

According to Mysteel's report, US hot coil prices have been falling recently. From mid December 2023 to the end of January 2024, the ex factory price of hot coils in the Midwest of the United States remained around $1200 per ton EXW. After early February 2024, the price of American hot coils has shown a significant decline. As of March 5, 2024, the ex factory price of hot coils in the Midwest of the United States was $900/ton EXW, a decrease of $10/ton from yesterday, a decrease of $70/ton on a weekly basis, and a decrease of $290/ton on a monthly basis SPFH490 steel.