In the run-up to the US Thanksgiving holiday, domestic steel prices continue to show a downward trend. As of the last trading day, the price of mainstream hot roll was $690 per ton (4,950 yuan), the lowest in nearly two years.

 The current glut of steel in the United States is not easing. According to data released by the American Steel Association, the utilization rate of crude steel capacity in the United States was 73.7 percent in the second week of November. While crude steel production was low compared with 82.8 per cent in the same period last year, downstream consumption fell more sharply month-on-month. Retail sales data, consumer surveys and quarterly results from some of the nation’s largest chains released this week suggest that the Thanksgiving holiday shopping season was muted compared to 2021, The Washington Post reported. While the consumer price index cooled in October, it still rose at a 7.7% annual rate, with high prices making it difficult for Americans to keep spending at last year’s level heading into the upcoming Thanksgiving holiday.

 From the operation of American steel mills, the profitability of the third quarter has fallen. According to the United States Nucor steel company released the third quarter operating results report showed that the company’s consolidated net income was $1.69 billion, down 20.65% year-on-year and down 33.98% quarter-on-quarter. Capacity utilisation fell to 77% in the third quarter from 96% a year earlier. However, from the perspective of profit per ton of steel, the current price difference between hot coil and scrap steel in the United States is 330 dollars/ton (2330 yuan), large steel mills still have a certain profit space, production sentiment is still not low. In the United States downstream consumption downturn, the short – term United States steel prices or continue to run weak.