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August 8, 2012
Will Carbon Flat-roll Price Hikes Stick?
Will the latest round of flat-roll price increases stick? Yes, according to the majority of respondents to the latest Steel Market Update survey, conducted in the first week of August.
SMU surveys mills, service centers, manufacturers, traders and toll processors each month to track market sentiment. Most of the responses to this poll came from OEMs and service centers.
Asked if the latest round of price increases, led by AK Steel on July 27, would be collected by the domestic steel mills, 56 percent of respondents predicted the domestic mills would be successful, while 44 percent predicted buyers would reject the increase.
Asked if the domestic mills were “justified” in asking for a second round of price increases, the response was more definitive. Nearly two out of three (62 percent) feel the latest price hikes were unjustified, given current market conditions.
When producers in North America raise prices, they always run the risk of attracting a surge of low-priced foreign imports. Indeed, 38 percent of the respondents to SMU’s latest survey believe the recent price hikes will attract more foreign steel. OEMs tend to lead the charge toward foreign sourcing, whereas service centers are more cautious, SMU reports.
In the past, a spread of about $60 per ton between foreign and domestic prices would trigger purchases of foreign products. With the higher levels of volatility today, a spread of $100 per ton is needed to prompt foreign sourcing.
For more information or to become a subscriber to Steel Market Update, visit www.steelmarketupdate.com
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2012 Directory of Master Distributors
Not Published on This Web site
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.
Print copies are available for $85 U.S. for each copy. Download Order Form.
2013 Directory of Toll Processors
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Metal Center News' annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.
Print copies are available for $85 U.S. for each copy. Download Order Form.
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