Steel Strip

First quarter flat product business is virtually finished now and spot prices for stripmill products have moved up in many instances. They are expected to rise further in period two if the mills’ initiatives prove successful. Most producers have not quantified their proposals so far. Although stocks are low throughout the supply chain, end-user consumption [...]

Although we have noted some minor downward corrections for flat products over the last month, market prices are starting to stabilise in most parts of the EU. The import threat from third country suppliers appears to have abated. The domestic mills would like to impose rises for the first quarter 2010 but the success of [...]

MEPS reported a generally weak market in November with the exception of China.
“Raw steel output continues to climb steadily in the US. Mill utilisation rates were up to almost 65 percent in the first week of November. However, the recent relighting of blast furnaces has not coincided with a similar upturn in consumption. Oversupply could [...]

The EU producers are currently facing low order intake as the flurry of activity in early September has tailed off now that distributors have restocked to appropriate levels. In many countries, prices have been lowered a little to encourage purchasing. Negotiations will start soon for first quarter 2010 business but no official announcements have been [...]

We have argued for some time that recent price increases implemented by the steel producers were premature and counterproductive.
Shortages due to greatly reduced inventories which in themselves were the result of poor sales lead to end users and distributors placing new orders in June and July. It was naive in the extreme for the steel [...]

German iron and steel production rose during September, suggesting demand was improving, but was still down sharply from a year earlier as the market remained weakened by the economic downturn.
German mills produced 3.5 million tons (3.17 million metric tons) of steel for the month, an 8 percent increase on the previous month. Year to date [...]

The latest MEPS report echoes fears that we currently have regarding Steel Prices :-
Transaction prices for most steel products increased in September in northern Europe. Producers have restricted their output since the onset of the international financial crisis, while stockists and end-users have reduced their inventories to a minimum. Delivery lead-times have increased as the [...]

Sept. 18 (Bloomberg) — Steelmakers face a slow recovery from the worst slump in demand since World War II as industry struggles to get funding for capital investment, according to Rautaruukki Oyj Chief Executive Officer Sakari Tamminen.
“The freefall has stopped and demand has leveled off at pretty low levels compared to where we were,” [...]

According to MEPS double digit steel price hikes have been recorded for the July to September period in EU flat products sector. Most of them have occurred in recent weeks as customers started to reorder after the August summer break. The increases have not been generated by significantly higher real demand. The main driver has [...]

We have just heard that Corus are to increase strip mill prices by £30 to £50 dependant upon grade.
Increased demand due to customer destocking is given as the reason.
At a time when some grades are in short supply we have little doubt that they will succeed in implementing the increase. However at a time when [...]