The financial crisis in Cyprus has made investors from all over the world to remember US as "safe Harbor" maximally protected from all risks and hazards. In the second half of March and in early April the funds were withdrawn from Europe and invested in U.S. government bonds or stocks of leading American companies, courses which are near historic highs.
However, the real sector of the US economy has been demonstrating impressive achievements. The unemployment rate in March again rose slightly, although most experts had predicted its decline. The appreciation of the dollar against the Euro and the yen reduces the competitiveness of American companies in world markets. Finally, the American manufacturers in an unstable economic situation are hesitant to make investments. According to some estimates, about $2 trillion. currently, is actually derived by American companies from the real sector of the economy in the form of reserves "cache" to "black" day.
As a result, the demand for steel products in the US remains relatively weak, while local metallurgists did not manage to achieve sustainable growth in prices. In the first half of March in the us market went up quotes as long and flat products, however, the main cause of this rise, analysts say the rise in the cost of scrap metal, which actually gained in the last month about $20-45 per ton to Keep the quotes to a new level was only manufacturers of structural steel. In their favour worked by such factors as a sharp decline in imports of rebar and wire rod in February and a seasonal revival in the construction industry.
At the end of March – beginning of April, the cost of rebar in the U.S. reached $750 per metric t EXW, while low carbon wire rod – about $750-765 per ton EXW, but in the near future it is expected a new decrease. Scrap in the USA in April has gone down, and if previously a reduction was estimated at approximately $10 per ton, it is now more probable is a decrease of $20 in t. Obviously, together with the scrap decrease in the price of long products. Especially because this month the American market should do significant amounts of cheap imports. Turkish companies sell rebar in the U.S. at $615-625 per MT CFR, while Chinese wire rod is quoted at $625-635 / t CFR.
Sheet steel in the United States began to fall in the second half of March. According to market participants, the real volume of consumption of these products is stable enough, but the proposal is excessive. Many companies are unable to sell the entire hire made in previous months, and therefore willing to make concessions. Delivery times are very short, so buyers are in no hurry with new deals. What is the meaning of creating reserves, if the required batch of products can be delivered within two to three weeks, and the delayed purchase in a falling market gives a direct win?
In mid March, hot-rolled coils in the USA for a short time peaked at around $700 per ton EXW. But in early April, quotes dropped to $675-685 / t EXW, but some traders put a counter offer at the rate of $600 per short ton ($661 per metric ton) EXW. Fell and steel plate: the material cost A36 declined in early April to about $800 per ton EXW. In General prices on the sheet material in the United States are already low enough to practically block the path for import from outside North America.
Apparently, the demand for flat products remains sluggish in the U.S. in April. Therefore cheapened the scrap metal is likely to move down and quotes on flat rolled.
 
Victor Tarnavsky
Rusmet.ru