Steelmakers Pinched by Price Plunge

Steel Apr 29, 2013 No Comments

SteelSteel prices have slumped this month, setting off a scramble among steelmakers to maintain prices and market share despite a nationwide glut.

In a bid to maintain market share in the lukewarm economy, steel mills have been increasingly offering 5% to 8% discounts on index-linked contracts since the financial crisis. “Everybody’s been undercutting in the market because there’s way too much steel,” says Charles Bradford, an analyst with Bradford Research Inc. They’re also offering price rebates and waiving some extra fees on higher-grade products, according to buyers and traders.

In recent weeks, (a point in the year when prices traditionally rise), things got so bad—with some price offers slipping to as low as $570 a ton on benchmark hot-rolled coil, down from $640 a ton at the beginning of the year—that at least three large steelmakers announced they were suspending these discount programs.

via Steelmakers Pinched by Price Plunge –

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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