THE MEPS WORLD ALL PRODUCTS STEEL PRICE RISES 7 PERCENT IN JUNE

THE MEPS WORLD ALL PRODUCTS STEEL PRICE RISES 7 PERCENT IN JUNE

US transaction prices continue to spiral upwards, although recent increases are more moderate. Nucor has announced a relatively small rise of $US30 per ton for August deliveries. Service centres 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.

The Canadian mills report that 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.

Remainder of article appears at MEPS