Posted: November 20th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: best practice, negotiation, steel, supplier | 1 Comment »
Years ago, while working for Green Giant, I phoned our steel can sales rep to ask for a 4% reduction. We had information suggesting steel prices had fallen 8%.
He certainly wasn’t very happy and, as expected, argued against any decrease.
“Are you saying you’re still purchasing steel at the same price as before?” I asked. “That would be surprising.”
“Um… no, of course not”, he said, “but look – let me get back to you.”
To learn more, follow the Negotiating Nugget on Propurchaser.
Posted: October 23rd, 2013 | Author: Rod Sherkin | Filed under: Steel, USA | Tags: steel, steel coil, steel price, steel price USA | No Comments »
Platts upped its hot-rolled coil assessment Tuesday from $645-655/st to $655-665/st and concurrently moved cold-rolled from $750-760/st to $760-770/st. All prices are normalized to a Midwest (Indiana) ex-works basis.
Mill discipline appears to be pushing flat-rolled steel pricing up in the US, though at least some market sources said Tuesday they fear that a late-year run-up could invite a glut of imports in the first quarter.
Read the rest of US steel sheet prices rising, questions looming about first quarter » » »
Posted: October 21st, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Metals, Steel, Transportation | Tags: baltic dry index, coal, iron ore, shipping, shipping rate, steel | No Comments »
In spite of the delivery of new bulk carriers ordered during the shipping golden age, dry shippers bulk freight rates are rising due to Chinese iron ore purchases. The shipowners are back on the bulk carriers spot market to meet the increase in Chinese steel production, the highest in three years, which is driving the biggest jump in shipping rates since 2009.
This increase in steel output has reduced the iron ore stock which fell to its lowest level since 2007. The number of Capesize vessels in service, the largest bulk carriers, increased by 51% in September to 124 from August according to a study by Morgan Stanley. More than 90% were intended for China.
Read the rest of Baltic dry index stable around 2,000 » » »
Posted: September 16th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: buyers, negotiation, negotiation tactics, steel, supplier | No Comments »
Stan Hankowski, a seasoned Buyer with a major American retailer tells an intriguing story that shows how Purchasers can help themselves by helping their suppliers.
He went to market last year to buy steel racking. He expected higher prices because he’d been tracking steel costs and knew they had gone up sharply.
via Negotiating Nugget on Propurchaser.
Posted: September 5th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Metals, Stainless Steel, Steel | Tags: china steel, stainless steel, steel, steel index, steel inventory, steel output, steel price, steel production | No Comments »
Steel reinforcement-bar or rebar advanced 10 percent to 3,735 yuan on the Shanghai Futures Exchange since reaching this year’s low on June 14 and may extend the rally to 20 percent by the end of 2013, meeting the common definition of a bull market according to a Bloomberg News survey of analysts.
In August this year, the purchasing managers’ index (PMI) of China’s steel sector increased to 53.4 percent, up 0.9 percentage points month on month, as announced by the China Steel Logistics Committee which is part of the China Federation of Logistics and Purchasing.
Also, the new order index for China’s steel sector stood at 57.9 percent, up 0.6 percentage points compared to previous month. Meanwhile, the export order index was stable month on month.
Read the rest of China: Steel prices toward a bull market » » »
Posted: August 29th, 2013 | Author: Rod Sherkin | Filed under: Commodities, Metals, Steel | Tags: steel, steel index, steel inventory, steel market, steel price, steel supply | No Comments »
The annual average Global All Products Composite steel price is predicted to increase approximately 4 percent in 2014, compared with the equivalent figure in 2013. This steel price rise would bring to an end two years of consecutive declines.
Selling figures in the North American strip mill market, which have been under negative pressure all year, have moved up due to a combination of tight availability and low steel inventories. Chinese prices have escalated, driven by high iron ore costs and an improvement in sentiment.
Read the rest of MEPS Forecasts Steel Price Upturn in 2014 » » »
Posted: July 16th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Economic Indicators | Tags: china, chromium, coal, commodities, commodities china, commodities price, electricity, gas, iron ore, nickel, steel | No Comments »
China announced Monday that its gross domestic product growth slowed to 7.5% in the three months ended in June. Its economic growth is still strong, compared with much of the world. But recent single-digit expansion rates are a notable comedown from a 14.2% peak in 2007.
Unlike so often in the past, though, the Chinese leadership shows little inclination to act. Indeed, the mood in Beijing is studiedly sanguine. Not only did the national statistics bureau describe yesterday’s figures as “within the reasonable range for the year”. Finance Minister Lou Jiwei even hinted, last week, that growth could drop well below 7 per cent over the coming months (although his remarks were later airbrushed into line with the official 7.5 per cent target by the state news agency).
The biggest losers from China’s rebalancing are likely to be the major commodity-producing emerging markets, most of which lie in Latin America, the Middle East and parts of Africa, but China’s slowdown will impact on different commodity groups in different ways.
Read the rest of How China’s slowdown is impacting commodities » » »
Posted: July 5th, 2013 | Author: Rod Sherkin | Filed under: Steel | Tags: steel, steel price, steel supply, steel usa | No Comments »
Steel prices in the U.S. are rising and not necessarily because the market is improving. This week, the price of benchmark hot-rolled steel coil, used to make cars, was reported up at $630 per ton, a rise of more than 10% from a 2013 low of $570 on May 28.
That reverses a six-month slide in U.S. steel prices caused by too much steel on the market, both in the U.S. and globally.
A trio of unforeseen events have unexpectedly helped boost prices 10% in recent weeks to their highest levels since early January. A blast furnace outage in Ohio, along with one in Brazil, and a work lockout in Ontario have taken an estimated five million tons of annual capacity, or about 4% of total U.S. supply, off the market in the last three months.
Read the rest of Steel prices may fall after recent bump up » » »
Posted: June 5th, 2013 | Author: Rod Sherkin | Filed under: Steel | Tags: meps, steel, steel output, steel price, steel production, steel supply | No Comments »
Steel prices across the globe continued trending downwards in May. Selling figures declined in twenty four of the twenty eight nations in which MEPS conducts research. In the remaining four countries, transaction values were stable.
Excess steel supply and poor demand are expected to continue to exert negative pressure on prices in the short term. Moreover, input expenditure is likely to remain at a low level in the immediate future.
Read the rest of MEPS Global Composite Steel Index Prices Drops to 38-Month Low » » »
Posted: May 16th, 2013 | Author: Rod Sherkin | Filed under: China, Steel | Tags: china steel, steel, steel glut, steel output, steel price, steel production | No Comments »
A surge in Chinese steel production and a flood of exports are pressuring world-wide steel prices despite Beijing’s efforts to rein in the steel industry, in the latest example of the global impact of China‘s massive industrial overcapacity.
Global steel prices have fallen 3.5% since February to an average of $710 a ton, according to MEPS steel consultancy. While China hasn’t been shipping much more directly to the U.S., much of its material is destined for the world’s largest economy via trans-shipments through Japan, South Korea, Singapore or Malaysia.
Read the rest of Surging Chinese Steel Exports Put Pressure on World Prices » » »