Global products steel price in June up by7% - MEPS - 03 Jul, 2008
UK based MEPS said that “US transaction prices continue to spiral upwards, although recent increases are more moderate. Nucor has announced a relatively small rise of USD 30 per ton for August deliveries. Service centers are keeping inventories at minimum levels as their sales activity is slow. End users, who are suffering because of the weakening economic climate are maintaining very low in house stocks and purchasing only for their immediate needs. Nevertheless, supply is vastly reduced. There is a lack of imports, caused in part by high sea freight rates and a weak US dollar.”
MEPS said that “In Canadian mills order intake is still strong and that they are operating at full capacity, despite concerns over manufacturing industry suffering due to high steel costs. Imports and future permits for overseas steel remain low and this reduced pressure has helped the local producers. Distributors' inventories are declining. Steelmakers expect that steel values will climb even further as the scrap situation fully impacts the market.”
MEPS added that “In China, most stripmill product prices continued to move upwards following our May research. However, more recently, some weakness has developed. Nevertheless, our figures are still above those of a month ago. Baosteel has revised prices for the third quarter in a positive direction, although there has been no formal announcement. Excellent sales to the automakers are helping to keep supply tight in Japan. Foreign steel is more expensive than domestically produced material. Quayside stocks of imported flat products, at end May, were 8.1% higher than in the previous month the first increase since September 2007. Export business continues to perform well.”
MEPS said that “South Korea's POSCO will lift most product prices for domestic sales, effective July 1, in response to soaring raw material costs and the higher prices of domestic and overseas competitors. Re-roller, Hyundai Hysco, also hiked values for cold rolled and coated steel, in a similar time-frame, having recently agreed a massive increase for its imported hot rolled feed. In Taiwan, CSC has announced a series of price rises for domestic deliveries in period three. The average advance is around TWD 4500 per tonne, which is lower than buyers' expectations. Demand generally is strong. Further expansion is anticipated in the final quarter.”
MEPS added that “Polish customers have accepted another price escalation as third quarter deliveries are finalized. In the Czech/Slovak markets demand is booming. Producers are talking of more expensive steel because of their higher costs. Overall, supply is tight, especially at the distribution level. End users are buying only for their immediate requirements and, therefore, service centers are keeping stocks on the low side. The relentless upward movement in West European prices continues. Customers are obliged to accept the higher third quarter values demanded by local producers. Values of imported strip are still increasing although less material is entering the region. There is relatively little steel from China due to the pending anti dumping investigations. Output from domestic mills appears to be restricted.”
