U.S. steel stocks rose crazy! S&P survey: steel prices to continue to rise in April

By    31 Mar,2022

In its latest survey of U.S. steel market participants, S&P Global said the main reason behind the continued rise in U.S. finished steel prices is the continued rise in raw material prices and price increases announced by domestic steel producers in the U.S. following the conflict between Russia and Ukraine.

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S&P Global said 91 percent of respondents expect steel prices to continue to rise in April, compared with 59 percent in March. Among the bullish people, 40% expect finished steel prices to rise by more than 5%. At the same time, no one participating in the survey expects prices to fall.


It is understood that the majority of respondents participating in the S&P survey attribute the expected price increases to rising steel scrap prices and the impact of the U.S.-Russia conflict on the supply chain, while short-term demand is also expected to remain strong. And steel scrap prices have been soaring due to disruptions in imports of pig iron and other crushed steel, with prices for regular and premium steel in the Midwest rising $135/ton and $187.50/ton, respectively, during March; preliminary indications for April suggest prices will rise $50-100/ton for regular steel and $100-200/ton for premium steel.

In addition, JP Morgan recently listed Cleveland-Cliffs (CLF.US) as the top pick in the U.S. steel sector, and the main reason behind this is that the impact of the U.S.-Russia conflict on North America is starting to show.


It is reported that in the U.S. stock market, stocks related to the steel industry also include U.S. Steel (X.US), Nucor (NUE.US), ArcelorMittal (AS:MT.US), Commercial Metals Corporation of America (CMC.US), Steel Dynamics (STLD.US).


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