The US steel mills informed customers that the supply shortage of cold-rolled and galvanized steel coils will raise domestic prices as the local steel mills planned to arrange the equipment overhaul in the coming months.

U.S. Steel recently announced that it planned to overhaul several of its steel plants in the fall. Some market participants indicated that the domestic steel mills have increased their production capacity while the prices were rising, that was why the overhauling was needed. Some buyers said that the current supply of galvanized steel coils is quite tight, so the maintenance will keep prices growing.

Separately, the market for cold-rolled coils has also been strong this year. The market attributed this to buyers replenishing cold-rolled coils inventory before the automotive industry's production rebounds.