Lower USA spot sheet prices; rising prices elsewhere

USA spot steel sheet prices are under their first sizable downward pressure this year. The mills' HRB price appears to be off by about $60 per ton to about $720 per net ton from the mid-August peak of about $780 per ton. Buyers are anticipating far lower surcharges for steel scrap, which is down sharply in price from the August peak (although now rallying moderately). Steel product price quotes continue to vary substantially by mill. Foreign offerings are up. The automotive industry has cut back its orders for steel sheet reflecting lower production schedules. Our contacts think that the steel mills, in order to sustain shipments, must now begin to work down their backlogs.