The monthly crude metals index (MMI) fell from April to May, with all its components falling. After rising sharply in March, flat steel prices rose for four months through April. Meanwhile, HRC prices have risen more than 82% from an uptrend that began in early December and peaked on April 14. Plate prices continue to move inversely to flat steel prices. After nearly a year of slowly declining, prices rose in April, pushing flat steel to its highest level since December.
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Product Description

Stainless steel is a kind of corrosion resistant high alloy steel. It has an aesthetically pleasing surface that does
not require surface treatments such as colored plating or paint, and is not corroded, rusted or contaminated like ordinary steel.
The corrosion resistance of stainless steel coil mainly depends on its alloy composition (chromium, nickel, titanium, silicon,
aluminum, etc.) and the internal structure of stainless steel coil, among which the main role is chromium element. Chromium has
high chemical stability, can form passivation film on the steel surface, isolate the metal from the outside, protect the steel
plate from oxidation, increase the corrosion resistance of the steel plate. In order to ensure that the yield strength, tensile
strength, elongation and hardness of all kinds of stainless steel coil meet the requirements of mechanical properties, stainless
steel coil delivery must be annealing, solution treatment, aging treatment and other heat treatment.

Stainless steel coil Advantages:

Stainless steel coil is one of the important stainless steel plate, according to the production process can be divided into cold rolled stainless steel coil and hot rolled stainless steel coil two categories

Product Photos :

US construction spending rose in March despite headwinds to construction demand. Total spending rose 0.3% from February, beating market expectations, according to the U.S. Census Bureau. Private and government spending overall increased this month, although housing construction remained weak. Overall, the former increased by 0.3% month-on-month and the latter increased by 0.2% month-on-month.
Construction costs remain the main driver of domestic steel consumption. Thus, growth in March supported increased demand for steel. The U.S. construction season typically runs from May to September, so spending is likely to provide continued support in the coming months.
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US infrastructure spending has and will continue to support the construction industry. However, government spending accounts for only about 22% of total U.S. construction spending, and while private spending also rose in March, it still shows signs of growing weakness. The problem started last year and continues to drive down overall costs. At the same time, public and private spending are likely to diverge further amid increased contractionary demand. In addition to the already evident weakness in residential construction, a recent report from Morgan Stanley suggests a looming threat from the commercial sector.
Commercial real estate is facing a major “refinancing wall,” the report says. In fact, more than half of the $2.9 trillion in commercial mortgages will be refinanced in the coming years. Even if the Fed decides to pause rate hikes after the recent 25 basis point increase, new lending rates could still be 3.5 to 4.5 percentage points higher than existing ones. Commercial real estate prices have fallen, partly due to the shift to remote work. However, many former office spaces are not easily converted to other uses. As a result, commercial real estate prices could fall by as much as 40%, matching the decline during the 2008 financial crisis.
These issues will not only impact the real estate sector but will also have an indirect impact on the demand for industrial metals. While this situation is likely to continue for several years, such a collapse could significantly increase overall steel demand.
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Given the changing macroeconomic environment, the US steel market appears to be becoming increasingly fragmented. While prices for hot-rolled coil, cold-rolled coil and hot-dip galvanized steel continue to fluctuate significantly, prices for flat steel are becoming more idiosyncratic.
The correlation between hot rolled coil prices and sheet metal prices peaked at over 93%. However, by 2022 the correlation between the two types of steels will weaken significantly. In fact, it is now only 78%. The reasons for this include higher levels of overall volatility over the past year and a sharp decline in HRC prices as they retreated from all-time highs. Given that government spending will have a disproportionate impact on the sheet metal market, it is unlikely that this trend will resolve itself in the near future.
The separation of the two markets will have many implications for buyers. First, buyers can no longer use price direction in one market as a leading indicator for another. What has been an apparent reversal of one trend over the past few years may be a sign that another is soon to follow. Second, the large difference between the two prices provides enormous scope for substitution. While sheet steel prices have historically been $179 per tonne higher than hot rolled coil prices, the gap has now widened to $504 per tonne. In addition, wafer prices remain high. Prices are showing an increasingly weaker trend as HRC prices remain close to their peak in April last year. This encourages the replacement of thicker hot-rolled coils with steel plates.
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