Bullish sentiment continues in the US steel market on supply concerns: survey

Most respondents attributed the expected rise in prices to increasing scrap prices, and the invasion of Ukraine changing the supply chain, demand was also expected to remain strong in the near term. Service centers have been more actively inquiring in the spot but higher mill offer levels have yet to be tested.

"There was an initial shock to the market and we should start to see things temper over the next couple of weeks," a flats distributor said.

Steel flats and longs market participants are starting to see tightening inventories month on month.

The daily TSI US hot-rolled coil assessment trended higher in March, rising by $400/st since the start of the month, according to Platts assessment from S&P Global, snapping five consecutive months of downturns.

This comes as tensions in the Black Sea region have sent scrap prices soaring on import disruptions of pig iron and other scrap grades by other countries. This has pushed shredded and prime prices in the Midwest by $135/lt and $187.50/lt, respectively, during the March buy week.