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SEASONAL LULL IN ACTIVITY KEEPS STEEL PRICES IN CHECK-金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th China(Guangzhou)Int’l&n
bsp;Metal &MetallurgyExhibition
8/14/2014 金属展-冶金展-钢铁展-steel expo-metal &metallurgy expo |
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US flat product transaction values are currently slightly
lower than those reported in June, according to MEPS. However, some minor upward
pressure has been noted in recent weeks. Mills in the mid-west still have
relatively long delivery lead times due to supply problems earlier in the year
plus scheduled outages at US Steel and ArcelorMittal. Moreover, there is
excellent demand from the auto sector. Manufacturing is strengthening and
construction is improving. Although overseas material is very competitively
priced at present, possible protectionist moves by the US government are
creating a great deal of caution amongst both traders and potential customers,
regarding forward ordering of material from third countries, primarily
China.
With the exception of hot rolled coil, Canadian transaction
figures are holding firm but there are some mitigating factors. The reline of
ArcelorMittal’s Chicago furnace has led to orders being moved to Dofasco,
pushing delivery lead times out by two to three weeks. Demand remains sluggish
and cheaper, offshore material has arrived, with more to come. Inventories
remain on the low side.
There is still a supply glut in China as
production remains high. Consequently, prices have continued to head downwards
since MEPS last report. However, overall inventory levels declined in June. A
recent stimulus plan, combined with new infrastructure projects, is expected to
support steel consumption over the coming months. Export volumes continue to
grow, year-on-year, as producers cut overseas quotations to boost
trade.
As the economic recovery continues in Japan, domestic order intake
rose in May, year-on-year, allaying fears that April’s increase in consumption
tax would cause serious damage to steel consumption. In contrast, export volumes
were still declining. Imports continue to grow, despite a weak yen. Flat product
market prices are firm.
Stagnant demand and oversupply have led to
discounting in South Korea. Economic forecasts have predicted a slowing of
growth in the second half of 2014. This creates a gloomy outlook for the
steelmakers who are also having to contend with a great deal of import
competition. The mills are looking to overseas markets to offload their surplus
capacity.
In Taiwan, major integrated producer, CSC, will leave domestic
list prices for September contracts unchanged after decreasing them for the
July/August period. The third quarter is, traditionally, a time of low demand
because of the rainy season in South East Asia. However, the company has started
to see signs of recovery and does not think it is necessary to cut prices
further.
Polish activity is no better ahead of the summer vacation. Due
to changes in the exchange rate, effective values have increased slightly in the
local currency. This represents unchanged prices in euro equivalent terms. The
Czech economy is slowly recovering, as is consumer confidence. Steel output is
expanding as industrial sectors show signs of growth. However, selling values
remain under negative pressure.
Activity in the West European market is
quiet ahead of the holidays. Although consumption is strengthening in several
countries and economic indicators are good, producers, keen to book orders, have
agreed further small price reductions. Customers point out that the mills have
relatively low raw material costs and cheaper third country imports are readily
available.
金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th
China(Guangzhou)Int’l Metal &MetallurgyExhibition
金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th
China(Guangzhou)Int’l Metal &MetallurgyExhibition
金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th
China(Guangzhou)Int’l Metal &MetallurgyExhibition
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