Feb. 17, 2016

Steel Prices on the Rise, But How High Will They Go?

Domestic steel prices, on a freefall through most of 2015, have started the year with a little tailwind. U.S. producers increased hot-rolled, cold-rolled and hot-dipped galvanized prices by $40 per ton in mid-December, then called for another $20 to $30 increase in January. Nucor did likewise with plate products.

The result was a domestic hot-rolled price around $380 in January, up about $30 from the prior month. Increasing scrap prices, plus a tightened supply due to reduced mill output and fewer imports, supported that improved pricing environment, according to Metal Bulletin Research.

However, the steel consulting firm cautions, there remain plenty of reasons to temper enthusiasm. Raw material prices remain low, and oil prices continue to deteriorate. The increase in the interest rate will strengthen the U.S. dollar, making the U.S. an even more inviting target for offshore offerings.

“We have seen this in the U.S. hot-rolled market where China (and several other nations) have been subject to prohibitively high antidumping duties. These duties have not prevented a surge in U.S. hot-rolled imports over the last two years, as other nations have replaced material from the blocked countries,” Metal Bulletin’s Amy Bennett writes.

Bennett believes the domestic price for hot-rolled will continue to increase throughout 2016, but at a slow pace. She forecasts pricing to sit between $400 and $450 for most of the year. While that would represent an increase from the depths of 2015, it would remain below the average price for the previous year.
 

November 2017: 'Steady but Sloppy' Fittingly Sums 2017
More...
 
Pause
November 2017: Scrap First Steel Impact from Storms
More...
Fall 2017: Cutting & Sawing Equipment
More...
Summer 2017
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Sunday, December 17, 2017