Posted: April 29th, 2013 | Author: Rod Sherkin | Filed under: Steel | Tags: steel, steel glut, steel price, steel supply | No Comments »
Steel 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.
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Posted: October 17th, 2012 | Author: Rod Sherkin | Filed under: Electricity, Steel | Tags: electrical steel coil, grain-oriented electrical steel coil, steel coil | No Comments »
According to MetalMiner IndX℠ data, grain-oriented electrical steel coil prices and electrical steel coil surcharges per metric ton have both been consistently declining over the past half-year, and the GOES coil price per ton as of September 2012 is the lowest it’s been since June 2006.
David Hartquist, an international trade lawyer and a partner at Kelley Drye & Warren LLP who represents SSINA, cited a large percentage increase for grain-oriented electrical steel so far this year.
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Posted: July 6th, 2012 | Author: Rod Sherkin | Filed under: Metals, Steel | Tags: steel | No Comments »
US hot rolled coil transaction figures slipped further in June, as was expected. There is still domestic overcapacity, despite the demise of RG Steel. Delivery lead times have shrunk and local mills are facing severe competition from attractively priced Russian coil now standing at the docks. Buyers are expecting a further decrease for the summer.
Hot rolled plate transaction figures declined again in June for a number of reasons.
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Posted: May 15th, 2012 | Author: Rod Sherkin | Filed under: Iron ore, Steel | Tags: iron ore, steel | No Comments »
Shanghai rebar fell to its lowest level in more than five months on Tuesday, stretching its losses into a third straight session, amid thin Chinese demand that could prompt producers in the world’s biggest steel market to curb output.
The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange touched a session low of 4,055 yuan ($640) a tonne, last seen on Nov. 30, before closing at 4,090 yuan, down 1.1 percent.
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Posted: January 10th, 2012 | Author: Rod Sherkin | Filed under: Steel | Tags: steel | No Comments »
Steel prices in the U.S. are running away from their European counterparts, creating a gap that could last until spring as the debt crisis hobbles the euro-zone economy, analysts say.
The market has weakened considerably in Europe, but has recovered in the world’s largest economy, thanks to an upturn in industry reflected by better-than-expected economic data.
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Posted: January 3rd, 2012 | Author: Rod Sherkin | Filed under: Steel, Uncategorized | Tags: steel | No Comments »
The price of steel has diverged sharply in the US and Europe, underscoring the differing economic fortunes of the two regions.
The $500bn-a-year steel market is one of the best barometers of the health of the manufacturing and construction sectors, and the rare split in transatlantic prices offers an insight into business sentiment in the US and Europe as companies prepare to report their annual results.
The price of benchmark hot-rolled coil steel in the US Midwest rose to $756 a tonne in December, 12.5 per cent higher than in November, according to CRU, a leading consultancy.
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Posted: July 27th, 2011 | Author: Rod Sherkin | Filed under: Steel | Tags: steel | No Comments »
Prices have fallen from near $900/ton for hot rolled coils to levels now under $700 according to the most recent view by Platts.
Steel price momentum is one of the models used by Steel Reality to analyze the flat rolled steel market.
Recent steel mill earnings announcements have noted falling prices with some looking for current spot market prices to be near a bottom.
This dramatic decline now has steel prices lower than fair value, as determined by one of our other price models. The question on where steel prices go from here has some very interesting answers. In the past 18 months, steel prices have risen to $190 over fair value (past March) and have fallen to $70 below fair value (October & November of 2010). As of today, they are currently around $40 below fair value, threatening to create a margin squeeze at steel mills.
via WSJ: Steel Price Momentum Pushes Lower as Hot Rolled Prices Sink.
Posted: July 3rd, 2011 | Author: Rod Sherkin | Filed under: Metals, Stainless Steel | Tags: stainless steel | No Comments »
Reportedly, stainless steel buyers tend to hold orders and avoid higher stock this quarter as nickel prices fall to USD 22,000 per tonne from February.
Poor stainless steel demand takes less chrome and molybdenum, leading to weaker stainless prices. Major stainless steel mills also decreased the demand for nickel, chrome and could stimulate further falls in surcharges.
Mr Markus Moll MD of SMR Steel and Metals Market Research said that stainless output has reached pre crisis level, yet China has become the net exporter of stainless.
via Steel Guru : Stainless steel buyers tend to hold orders on down nickel prices.
Posted: June 17th, 2011 | Author: Rod Sherkin | Filed under: Steel | Tags: steel | No Comments »
Usually one or more of the mills who had announced price moves begin undercutting the existing price levels in order to fill their order books. The mills who move first are generally well known within the industry as they are committed to keep their equipment (furnaces, etc.) running full.
Earlier today I had a conversation with a service center executive I have known for a good portion of my personal steel career. We were discussing the flat rolled steel market and the specific pricing policies of one mill in particular (to remain nameless). What I found interesting, is the discussion turned to the pattern used by domestic steel mills which ends up breaking down flat rolled steel prices causing the market to drift lower.
The pattern, or cycle, goes something like this…
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Posted: April 19th, 2011 | Author: Rod Sherkin | Filed under: Metals, Steel | No Comments »
MEPS believes steel transaction values will decline in the remainder of the second trimester, despite higher mill input costs. Buyers are already anticipating discounts when third quarter negotiations get underway.
Steel price rises have stalled in the European market. Increased selling values sought by the domestic producers have not been implemented and figures have, in fact, slipped.
Order intake at the mills is slow. Many companies have adequate inventories and are only ordering to meet their immediate requirements. Moreover, they are restricting purchase volumes due to growing uncertainty regarding the future steel price trend.
Imports, which were ordered in the first quarter, are now arriving into European destinations in large quantities. This situation has contributed to the downward pressure on domestic selling figures.
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