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Steel price keep rising, boosted by higher scrap costs
February 1, 2008
There’s been no let up on rising flat-rolled sheet prices, noted Platts and others this week…the Platts Steel Market newsletter’s Midwest HR coil reference price for March is figured at $652.50/net ton, ex-works…cold rolled placed at $745…as they see it, it’s all about “tight supply” and “cost-side pressures” – a formidable one-two punch…
Purchasing.com placed the January transaction price average for HR sheet at $579 and credited what they view as “price inflation” to positive global demand for steel; low imports levels; tight supplies and price volatility for steel-making materials; low service center inventories; and higher freight charges…and lets not forget the impact of a weak dollar…many concur, with the principal price driver being cost-push, not demand-pull.
World Steel Dynamics’ “SteelBenchmarker” is also showing higher prices as January ends…their latest has the market for HR at $641, up $47 from two weeks ago, while Steel Business Briefing’s Steel Index has its Midwest HR reference price pegged at $663, a 12-month high and up some $80 in the past four weeks…
Meanwhile, our friends at Steel Dynamics also remarked that the domestic steel industry was experiencing at “structural supply shortage” that was not being filled by imports and they also expect that “scrap costs will remain high throughout (this) year.” Speaking of which…
This week’s Iron Age is showing delivered Chicago bushelings at $414-$415/gross ton…shreds at$392-$393, and the No.1 HMS (heavy melting scrap) composite at $329.17…other reports note East Coast sales of HMS at $365…shredded scrap at $400 and Midwest bushelings said to be fetching $410-$420, delivered… the latest “SteelBenchmarker” report is showing slightly lower prices for shredded scrap at $379 compared with just two week ago ($384)…
The international market for ferrous scrap continues to boil…Southeast Asia said to be a buyer of No.1 HMS at $490-$495/metric ton cfr…containerized shipments of shredded material, earmarked for Taiwan figured at closer to $455 cfr. Prices to Turkey are off a bit but that’s more to do with lower ocean freight rates, we understand…
Posted by Robert J. (Bob) Garino on February 1, 2008 | Comments (1)
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