Essay About Prices Surge And Steel Prices

Cru Steel
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Prices surge — but cracks in demand appearing
The continued rise of finished steel prices in world markets has seen the CRUspi global index rising by
13% month-on-month in May to reach a new record level of 268.0 — the largest increase in percentage
terms since early 2004.
US Midwest steel sheet prices rose by around 20% in the due to tight supply and a continued absence of
import pressures. Although US sheet prices are currently at a large premium to European and, more
importantly Asian prices, the weakness of the dollar combined with high freight costs, as well as strong
demand in other markets have kept import pressures at bay for now. If sheet prices settle towards the
higher end of recently announced price increases however, it may be that despite these factors, imports do
again become an issue. In the long products market, a spike in scrap prices of between US$147-190/l.ton
caught some producers by surprise, but nonetheless necessitated further increases in finished products
prices. Pricing strategies varied by producer with structurals rising the least, while bar and rod mills were
able to use the quieter import situation to raise prices by between US$150-190/s.ton.
Despite patchy demand, European sheet market fundamentals remain tight on the basis of limited supply.
Price rises in Europe have been more moderate than in other regions, and as such, a sudden downward
correction seems less likely. Mills seem careful to keep production in line with demand to maintain
current prices, and latest announcements from ArcelorMittal suggest that sheet prices should remain firm
over the summer period, despite a predicted slowdown in demand. Meanwhile, European long products
mills are operating at full capacity with crammed orderbooks, as supply/demand