Steel Price Softens as Supply Solidifies – WSJ.com

“Steel buyers in the United States are bearish on the price outlook for hot-rolled,” he says. “They’re now receiving offers for hot-rolled band from abroad in the $740-$800 per-net-ton range, which compares to the domestic price in the $870-$890 per-ton range.”

The world’s steelmakers are increasing output despite softer demand, pushing down prices.

In a few countries, notably Brazil and the U.S., steel prices remain high, thanks to steady demand in the former and limited output in the latter. Many U.S. plants that had shut down or pared production during the recession haven’t yet gone back online fully. AK Steel Holding Corp. in February said it would increase, by $50 a short ton, prices for all of its carbon, flat-rolled steel products, a move followed by other U.S. steelmakers.

But U.S. prices—especially for hot-rolled steel, a key component used in most steel products—could be headed lower too, says Peter Marcus, economist and steel analyst for World Steel Dynamics Inc., a consulting firm.

For more details, click the link below:

via Steel Price Softens as Supply Solidifies – WSJ.com.

How the Steel Market Works – A seminar by SBB

This is a good training course for people who want to quickly learn about the key players and economic drivers in the North American Steel market.

It’s not inexpensive, but in two days, trainees will know how to recognize the production processes used to manufacture steel, identify semi-finished and finished steel products and their uses, understand the industry structure, raw materials, value chain, trade flows and manage price risk in a context of price volatility.

Click this link for more information:

 http://www.steelbb.com/us/trainingusa/pittsburgh/jun11/

Stainless Steel prices to fall as Nickel drops – MEPS

The LME nickel price plummeted from nearly US$29,000 per tonne on March 5 to just above US$25,000 per tonne on March 15. This will create negative pressure on stainless steel transaction values in the near term. In Europe, the alloy surcharge for type 304 flat products in April is down by between €76 per tonne (ThyssenKrupp Nirosta) and €102 per tonne (Aperam) compared with the March figures.

Many customers had, since the beginning of the calendar year, been either restocking or buying more than their immediate requirements as they anticipated effective prices rising through the first half of 2011. This led to healthy ex-mill sales volumes and made it difficult to quantify the upturn in real demand. However, as buyers have been able to foresee lower transaction figures in the near future, or because they are cautious of price volatility, purchasing activity has slowed to a crawl in many countries in recent weeks.

via stainless steel news, steel news, free steel news, steel industry news, steel price news, steel news alerts.

Record Copper Prices Prompt Switch To Aluminum – WSJ.com

Copper’s price surge this year is sparking a switch among manufacturers to another electricity-conducting metal: aluminum.

Makers of automobiles, air conditioners and industrial components are increasingly turning to the much cheaper metal to help offset rising cost pressures as the global economic recovery gains steam.

The difference between the prices of copper and aluminum is now enough to cover the costs of retooling some manufacturing processes and pay for the extra aluminum it takes to conduct the same amount of electricity as copper.

“There is a lot more engineering and development activity as these companies think about how to replace copper with aluminum,” said Charles Belbin, spokesman for Atlanta-based aluminum producer Novelis Inc., a unit of India’s Hindalco Industries Ltd.

Markets ripe for the switch include wiring for automobiles and buildings and evaporator and condensing coils used in commercial refrigerators.

via Record Copper Prices Prompt Switch To Aluminum – WSJ.com.

Japan Disaster Weighs on Steel – WSJ.com

The price of hot-rolled steel, which is widely used and considered a benchmark product, has fallen about 3.5% to about $735 a metric ton in China since earlier this month. However, prices of hot-rolled steel in the U.S. continue to rise.

Weak demand for steel in Japan, the world’s third-largest consumer, is further depressing spot prices for iron ore and some steel products throughout the world following last week’s earthquake.

Spot iron-ore prices continued to fall in Asia by about 3.4% to around $147 a metric ton in the past week. As recently as February, spot iron-ore prices were hovering around $170 a metric ton.

The price of hot-rolled steel, which is widely used and considered a benchmark product, has fallen about 3.5% to about $735 a metric ton in China since earlier this month. However, prices of hot-rolled steel in the U.S. continue to rise.

via Japan Disaster Weighs on Steel – WSJ.com.

Nucor provides first-quarter guidance – MarketWatch

“As we expected, our profitability has improved each month from the beginning of the quarter to the end of the quarter, as utilization rates increased and as price increases for steel mill products caught up with higher raw material costs,”

Nucor Corp. provided a fiscal first-quarter forecast on Tuesday that bridged the Wall Street consensus. For the current period, the steel manufacturer predicted earnings to be in a range of 30 cents to 35 cents a share, while analysts surveyed by FactSet Research expect earnings of 33 cents a share, on average.

 ”As we expected, our profitability has improved each month from the beginning of the quarter to the end of the quarter, as utilization rates increased and as price increases for steel mill products caught up with higher raw material costs,” the company said in a statement. “We expect this trend to continue through the second quarter

via Nucor provides first-quarter guidance – MarketWatch.

US flat-rolled steel prices edge $5/st higher on decent demand – Platts

More spot deals came to light Wednesday in the US flat-rolled market, pushing up by $5/st both of the Platts assessments for hot- and cold-rolled coil supplied by domestic mills.

The range of deals assessed by Platts for US-made HRC fell within a wider spectrum of $850-880/st, resulting in a higher midpoint of $865/st ex-works Indiana, with lead times reported at four-to-six weeks by active buyers.

Lead times for cold-rolled coil were two to three weeks longer at most mills, sources said, and the CRC price reached a midpoint of $970/st ex-works Indiana.

“Several mills are starting to look at May,” said a major Chicago-based buyer, “and one reason is because ArcelorMittal has very little spot availability for April.” He reasoned that ArcelorMittal's contract business has been strong thanks to automotive, leaving fewer tons for the spot market.

Auto sales, inventory and production in the US all look like they will support steel demand, according to Josh Spoores, chief analyst at Ohio-based Steel Reality.

via US flat-rolled steel prices edge $5/st higher on decent demand – Metals | Platts News Article & Story.

THE MEPS GLOBAL STEEL PRICE JUMPS 10 PERCENT IN FEBRUARY

Good overall demand helped mills in all regions to implement price hikes in February as they attempted to recover their escalating input costs. Weakening of the US dollar against many Asian and EU currencies added to the upward trend in the calculated MEPS average transaction values.

Sales volumes improved due to growing end-user demand and re-stocking by many distributors. Availability remains tight due to restricted production volumes and low inventories in the market.

Recent gains in spot market prices for raw materials will, almost certainly, result in significant advances for second quarter contract prices for iron ore and coking coal. Scrap costs are also likely to move higher in the short term due to increased buying activity in Asia. Consequently, steel transaction values are forecast to climb further over the next few months.

via carbon steel price news, steel news, free steel news, steel industry news, steel price news, steel news alerts.

Silver Nears 31-Year High – WSJ.com

Silver prices neared 31-year highs on a brightening outlook for the global economy and as inflation concerns have revived.

Silver for February delivery rose 72.6 cents, or 2.3%, to settle at $32.2980 a troy ounce on the Comex division of the New York Mercantile Exchange. It was the metal’s strongest close since March 1980.

via Silver Nears 31-Year High – WSJ.com.

EU STEEL PRICES SOAR IN FEBRUARY – MEPS

EU Average Hot Rolled Coil transaction price soared by almost €100 per tonne in February. Buyers are anticipating further increases in domestic values of flat products in the second quarter as steelmakers make large upward adjustments, in line with higher raw material costs.

The EU mills are currently busy because of the restocking exercise that started in December ahead of price rises.

via Steel Price News, Steel news, EU steel prices, Steel Industry news, Free steel news, Steel news, Steel news alerts.