Steel market adapts to rapid changes as coronavirus spreads across US

Unlike other commodities sectors, the domestic steel market seemed to be largely immune during the first few weeks of Covid-19’s spread across the US. Prices held relatively steady and mill production was fairly constant, with most participants basically in wait-and-see mode, but concern was limited.

The scenario has shifted dramatically in recent days. The Big 3 automakers of GM, Ford and Fiat-Chrysler, as well as Honda and Toyota, announced temporary production stoppages in North America. That got the attention of flat-rolled steel producers, distributors, and even scrap processors.

Christopher Davis, S&P Global Platts regional pricing director for metals in the Americas, examines the market with Mike Fitzgerald, US ferrous metals managing editor, and and Nick Ruggiero, regional metals derivatives manager.