US steel prices are on the decline due to reduction in demand by car and other large-scale manufacturers. These domestic suppliers are looking to reduce inventory and buyers currently can expect significant discounts on their purchases.
The SEAISI article states “US market participants note that the recovery in domestic demand and steel prices will be directly related to how each state will lift existing restrictions and how companies will adopt social distancing, at an operational level.”
We have already seen car manufacturers that reopened, have since shut back down due to employees testing positive for COVID-19 (read more about the Ford Plants Closure due to Covid-19).
Small-scale steel buyers, such as IFNM, are not seeing deep discounts on prices for steel currently. This leads us to believe that volume and purchasing directly from the domestic suppliers are key to seeing savings.
References
Covid-19 Pandemic Hits US Steel Demand and Prices, May 5th, 2020
http://www.seaisi.org/news_details.php?nid=10001
Ford temporarily closes two plants after three workers test positive for coronavirus, May 20th , 2020
https://www.cnbc.com/2020/05/20/ford-closes-chicago-plant-after-two-workers-test-positive-for-covid-19.html
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