Metalnewsnet 24 Feb:

It is reported that the US metallurgical companies continue to increase flat steel prices. In mid February 2010, AK Steel announced the quotations increase for all kinds of carbon steel and flat steel by USD 55 per tonne. Earlier US Steel's Nucor provided the decrease as well, but to a smaller extent.

Thus, new prices for HRC from the leader US companies exceed USD 705 per tonne EXW. In spot market the prices for HRC in mid February 2010, amounted about USD 670 to USD 695 per tonne EXW and CRC were quoted at USD 785 to USD 805 per tonne EXW. Basic prices for galvanized steel from US Steel reached USD 860 per tonne EXW.

Many US analysts say that the increase is to finish soon. According to them, the demand has stabilized, although at insufficient level and is likely to go down shortly. At the same time steel output in the USA continuous to increase.

American Iron & Steel Institute said that in the period from February 6th 2010 to February 13th 2010, the national metallurgical capacities load amounted as much as 68%, and steel output in 1.5 months of 2010 is up 53.5 % on the same period of 2009. Nevertheless it is too early to say that the US market is getting full.

According to Metals Service Center Institute, steel products stockpiles at the US steel service centers in the end of January 2010 were only by 1.2 % more than a month ago and were the equivalent to2.4 months of the consumption. This figure is rather low. Recently the plate market only is exhausted. This market seems to be oversold, whereas the demand for HRC and CRC remains stably high, first of all, from pipe rolling and automotive industries.

The situation in the US economy does not look excellent. The termination of some stimulating programs causes the specialists’ questions and concerns. However, these doubts of the market participants paradoxically positively affect the national steel producers. Firstly, there is no significant stockpiling which can cause the market oversupply and the fall. Secondly, the US traders do not want to deal with import due to long shipment terms, which is the significant disadvantage in the unstable market situation.

In mid February 2010, Mexican products only in south states could compete with the US HRC manufacturers. At the same time, Chinese CR steel, which was offered at USD 750 to USD 770 per tonne CFR FO in early February 2010, jumped to USD 850 per tonne CFR FO and more.

By all appearances, the US flat steel manufacturers will manage to gain another increase of the prices in March explaining it by the raw materials prices growth. And only the second crisis wave in the US economy or cheap import supplies increase will be able to turn the prices back. However, it is more possible that high prices in the USA will become the reason for the producers from other countries, who intend to increase the prices again in the Q2.

At the same time the stabilization happened in the US long products market. Rebar prices kept USD 575 to USD 585 per tonne EXW since the end of January. Nucor has not increase the section steel and beam quotations again. Wire rod manufacturers count on somewhat increase of their products prices in March.

(Sourced from www.rusmet.ru)

Editor: KylinTse