Steady US WFB market sees slight uptick in demand

Friday, 01 March 2013 23:17:53 (GMT+3)   |   San Diego
       

Although no one was surprised when US domestic wide flange beam (WFB) prices stayed neutral this month, the trend is indicative to the product's small portion in the general longs market pie.  Some large distributors are still selling at published mill prices of $39.00 cwt. ($860/mt or $780/nt) ex-mill, but there have been no attempts to reign in discounting as seen in the US merchant bar market--sources say mills are counteracting low order activity with fairly low inventory levels.  Demand is not particularly strong, but distributors have reported some upticks in certain key end-use sectors.  On the West Coast, commercial construction projects are picking up slightly, while East Coast distributors have seen increased activity in housing beams and solar power yards.

As for imports, offers from overseas are low, but not attractive enough at the moment in the range of $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt), DDP loaded truck in Gulf Coast ports from Korea and Spain.  With no indication that import offers will drop to enticing levels any time soon, US buyers are content to rely on domestic supply for their minimal needs.  However, if construction activity picks up this spring at more robust levels than has been seen in the past few years, tight supply stateside could result in fuller order books for traders.


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