Steel prices rise as demand to increase

Monday, Feb14, 2011

Reports of an expected 10 percent increase in steel demand in the United States this year sent some steel company stocks higher Thursday, the same day AK Steel announced a price increase.

West Chester-based AK Steel (NYSE: AKS) said it is hiking current spot market base prices for all carbon flat-rolled steel products, effective immediately with new orders. The company, the largest in the Dayton region, said base prices for carbon flat-rolled products will increase by $50 per ton.

This week, Arcelor Mittal (NYSE: MT), the world's largest steelmaker, said it expected a 10 percent increase in the U.S. demand for steel this year, with demand in China and Europe climbing up to 7 percent.

Stock prices got a boost on the news, with Arcelor shares climbing 1.3 percent to $38.09, AK Steel shares increasing 1.2 percent to $15.71, United States Steel Corp. (NYSE: X) jumping 1 percent to $57.83 and Nucor Corp. (NYSE: NUE) climbing half-a-percent to $47.29 per share in trading on Wall Street Thursday.

President Barack Obama reached out to the business community this past week, and has discussed spending $50 billion to improve infrastructure in the country as one of several new initiatives. Any effort to boost construction likely would help drive further demand for steel.

Despite increased demand that has boosted revenue for some steelmakers, profit has lagged. Last month, AK Steel reported a fourth-quarter and full-year 2010 loss, and Arcelor reported a loss this past week.

For the full year, AK Steel's loss grew to $128.9 million, or $1.17 per share, from a loss of $74.6 million, or 68 cents, in 2009. Sales for 2010 were about $6 billion, up from about $4.1 billion in 2009. The company's steel shipments increased to 5.7 million tons compared to 3.9 million tons for the full year of 2009. (sourced:AFP)

PSM goes for another hike for steel products

Sunday, 06 Feb 2011
Daily Times reported that Pakistan Steel Mill has raised prices of steel products once again by PKR 1,000 per tonne to PKR 1,500 per tonne.
Billets 150x150 - By PKR 1000 per tonne to reach PKR 54,000 per tonne
Slabs - By PKR 1,000 per tonne to reach PKR 51,500 per tonne
Plate - By PKR 1,000 per tonne to reach PKR 54,000 per tonne
Galvanized - By PKR 500 per tonne to reach PKR 83,300 per tonne
CR - By PKR 500 per tonne to reach PKR 78,300 per tonne
HR - By PKR 1000 per tonne to PKR 2500 per tonne(sourced:Daily Times)

Russian domestic steel market characterized by uncertainty - RUMSS

Sunday, 30 Jan 2011
According to the Russian Union of Metal and Steel Suppliers, the current price increase in Russian domestic steel product market is based on the effect of short-term factors such as the rise in oil prices, the influence of natural disasters, the rise of export quotations and inflation.

RUMSS considers that there are no solid factors for increases in rolled steel prices, as domestic demand remains weak. RUMSS also noted that the problem is exacerbated by the fact that this year there is a lull in private and individual construction activity, while in 2010 many metal trading and metal processing companies had shifted their focus to meeting the needs of customers in this particular sector.

The RUMSS statement said "Market participants are cautious about predicting the development of the situation in the future, although many believe that such a sharp increase may be replaced by an equally sharp decline in rolled steel product prices. It is also difficult to predict when this could happen."(sourced:steelorbis)

Tokyo Steel to increase steel prices by up to JPY 3000 a tonne

Saturday, 29 Jan 2011

Japan's largest electric steelmaker Tokyo Steel Mfg Co announced that the company has decided to increase the list prices of the whole steel products by JPY 2,000 to JPY 3,000 per tonne in its February 2011 supply contracts of domestic sales, with a January 26th 2011 deadline for order intakes. The decision indicates a price increase across the board for two consecutive months.
A price increase of JPY 2,000 per tonne applies to sheet products, heavy plates and square pipes. Another price increase of JPY 3,000 per tonne applies to long products.

As a result, the new list prices of main products in base sizes are1. JPY 69,000 per tonne FOT for HR coils2. JPY 87,000 per tonne FOT for hot dip galvanized coils3. JPY 73,000 per tonne FOT for checkered plates4. JPY 76,000 per tonne FOT for heavy plates5. JPY 78,000 per tonne FOT for H beams6. JPY 75,000 per tonne FOT for channels7. JPY 87,000 per tonne FOT for U piles8. JPY 61,000 per tonne CIF for deformed bars.

At the same time, Tokyo Steel announced a start up of heavy plate sales out of its captive warehouse in the Osaka area to meet the requirements of various customers. Heavy plates on sale are ones of 9mm to 40mm thick and 2,100mm/2,438mm wide on the SS400 standards.
Mr Naoto Ohori MD & GM of marketing at of Tokyo Steel said that "The price increases to take effect are intended to meet a surge in ferrous scrap prices. Prices of steel products are trending upward, but it will take time to correct cave in prices. The company is poised to watch prices of raw materials, supply demand conditions for steel products and foreign exchange markets after the lunar New Year holidays (February 2nd 2011 to February 8th 2011) in China."

He added that "The company estimates finished steel production from its five works at a total of around 150,000 tonnes for January 2011. On the agenda are periodic equipment repairs at the Okayama and Utsunomiya works for six days each from January 24th 2011 and at the Kyushu works for 13 days."(Sourced:TEX Report Limited)

PSM raises steel prices

Tuesday, 25 Jan 2011
Business Recorder reported that the Pakistan Steel Mills Corporation has announced to raise prices of the six products by amounts up to PKR 4,150 per tonne, to rationalize its prices in line with international market prices.
As per report, PSM has raised prices of billets, hot rolled coils, cold rolled coils, thick plates, MS slab and pig iron by PKR 500 per tonne to PKR 4,150 per tonne with immediate effect.
Some of the details mentioned in the report are
Excluding taxes
1. Billet - Up by PKR 1,000 per tonne to PKR 4,150 per tonne90X90/ 80X80/ 75X75 mm - Up by PKR 4,150 per tonne to PKR 57,000 per tonne100X100/105X105 mm - Up by PKR 3,500 per tonne to PKR 56,000 per tonne125X125 mm - Up by PKR 2,500 per tonne to PKR 54,500 per tonne150X150 mm - Up by PKR 1,000 per tonne to PKR 53,000 per tonne
2. HRC - Up by PKR 500 per tonne to PKR 1,400 per tonne2-2.35X100/1220 - Up by PKR 1,400 per tonne to PKR 62,600 per tonne2.35- 3.25mm - Up by PKR 1200 per tonne to PKR 62,200 per tonne3.25-3.65mm - Up by PKR 1,000 per tonne to PKR 61,800 per tonne3.6504mm - Up by PKR 900 per tonne to PKR 61,500 per tonne4-5mm - Up by PKR 600 per tonne to PKR 61,000 per tonne5-6mm - Up by PKR 500 per tonne to PKR 60,700 per tonne
3. CR - Up by PKR 500 per tonne to PKR 800 per tonne
4. Plates - Up by PKR 1000 per tonne to PKR 53,000 per tonne
5. Slab - PKR 50,500 per tonne
6. Pig iron - PKR 42,200 per tonne
(Sourced from Business Recorder)

Nippon, Toyota may OK 1 pct steel price hike - Nikkei

Jan 22, 2011 (Reuters) - The world's fourth-biggest steelmaker, Nippon Steel Corp (5401.T: Quote), and Toyota Motor Corp (7203.T: Quote) are likely to agree on an around 1 percent increase in steel prices for the second half of fiscal 2010, the Nikkei reported, citing sources close to the negotiations.
The figure is much smaller than the roughly 25 percent jump for the first half of the year, the business daily said.
After falling earlier in the October-March period, iron ore and coking coal prices are on the rise again and steelmakers have thus sought to pass the higher costs to carmakers and other major customers, the paper said.
Faced with deteriorating margins on vehicle exports, Toyota demanded a price cut, arguing that steelmakers costs for importing raw materials are declining due to a stronger yen, the Nikkei said. (Reporting by Saqib Iqbal Ahmed in Bangalore)