June 30 (Bloomberg) -- Steel prices in the U.S. fell 3.1 percent in June, the 11th straight monthly decline, as a global recession prevents steelmakers from charging more for their products.

The average price of hot-rolled steel sheet, the benchmark product used in cars and appliances, dropped to $380 a ton from $392 in May, Purchasing Magazine said today in a monthly update. Cold-rolled sheet slipped 2.1 percent to $467 a ton.

Hot-rolled steel prices have plunged 64 percent from a record $1,068 a ton in July as the slowing global economy reduced demand for automobiles, appliances and homes. U.S. Steel Corp. and Nucor Corp., the two largest U.S.-based steelmakers, are among producers that have slashed output to try to bring production in line with demand amid the worst recession in at least half a century.

“The steel market continues to be sluggish, despite protestations by some analysts that recovery has begun,” the magazine said.

Prices for hot-rolled steel were the lowest in June since the spot-market price averaged $350 in January 2004, according to data published last month by the trade magazine.

“U.S. end-user purchasing is expected to remain weak for remainder of 2009,” the magazine said. “The steel makers admit very little marketplace impact from the government’s fiscal stimulus package is expected this year.”

U.S. Steel, based in Pittsburgh, fell $1.27, or 3.4 percent, to $35.74 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 3.9 percent this year. Nucor, based in Charlotte, North Carolina, dropped 82 cents, or 1.8 percent to $44.43.

Steel demand has increased in recent weeks, U.S. Steel and Nucor said at a conference in New York last week. A drop in manufacturing and concern about future growth prompted steel- products distributors to let inventories decline to levels below real demand, said Nucor Chief Executive Officer Dan DiMicco.

To contact the reporters on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net; Christopher Donville in Vancouver at cjdonville@bloomberg.net.

Last Updated: June 30, 2009 16:48 EDT