Price rises run out of steam

摘要

Despite noticeable restocking in North America, production restraint across Europe particularly in Poland and the Czech Republic, and a general reduction in Chinese billet and finished steel exports, long products prices have generally corrected downwards in November. Construction-demand has receded, owing to seasonal factors, while falling scrap offers have added to downward pressure on long products prices. As a result, the CRUsteel price index for steel long products has fallen by 5.9 points to 136.5, slightly above the average level so far this year. Though ferrous scrap surcharges in November have fallen quite dramatically in the US Midwest this month, in some cases by US50 dollars/s.ton, long products prices have generally stabilised. Indeed, the largest declines of US20 dollars/s.ton for both merchant and reinforcing bars have been entirely offset by increments to wire rod transactions. Of all the markets, it is clear that the demand for structural sections, such as beams, has remained the most firm. Indeed, having fallen to just 1.9 months of shipments-on-hand in September, service centres that procure beams have been rapidly restocking over the past month.