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    January 8, 2021

    CRU: U.S. Buyers Seek Import Options Amid Extreme Supply Tightness

    Written by Estelle Tran

    By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service

    U.S. steel service center inventories continue to remain low in terms of material in stock, as many buyers reported that they cannot secure all the sheet steel they require. Steel Market Update, which is owned by CRU, reported service centers carried 51.3 shipping days of supply of sheet at the end of December, which was down from 62.9 shipping days of supply in December 2019. However, service centers also have record levels of material on order, according to the SMU data, though when factoring the seasonal increase in shipping levels expected in January-February, inventories are still lean at 40-43 shipping days of supply. Strong bookings extended sheet mill lead times out to 6-12 weeks, depending on the product and mill. Late last year when service centers were panicking about covering customer requirements, buyers looked to offshore options to secure material. However, now that prices are nearing the peak, many buyers are finding that import options are limited and are avoiding placing orders that are not pre-sold.

    Estelle Tran

    Estelle Tran is a senior analyst at CRU based in Pittsburgh. Estelle joined CRU as a steel and ferroalloy prices analyst in October 2017. She is the main contact for data providers who contribute to the CRU Midwest flat-rolled steel indices. She is also the editor of the Steel Monitor and analyzes the monthly service center inventories report for Steel Market Update. Prior to joining CRU, Estelle worked at S&P Global Platts, reporting on flat-rolled steel, long steel, primary aluminum and trade issues. She earned a B.A. in English writing and history from the University of Pittsburgh. Estelle is also past president of the Pittsburgh chapter of the Association of Women in the Metal Industries and the Northeast regional vice chair.

    Read more from Estelle Tran

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