As prices go up, consumers grow cautious

摘要

Recent price increases of up to 30 per dollars ton for coated steel coil, particularly galvanized sheet, have a good chance of sticking, according to industry watchers. U.S. Steel announced a 30 per dollars ton hike effective January 5. International Steel Group (ISO) launched price increases of 10 dollars effective October 13 and November 3, with AK Steel following suit. USS-Posco introduced a 20 dollars increase, effective November 1, on top of an identical increase on September 1. This after Steel Dynamics and Nucor had effected 30 dollars total increases in the second quarter for flat-rolled products. At press time, rumors of even stiffer price increases, and short supply of flat rolled steel were making their way through the industry. In the short term, stronger economic numbers and continued lean inventories among steel users probably will allow at least some of the increases to remain, said Leo Larkin, metals equity analyst for Standard & Poor's in New York City. "Based on what seem to be strong order hooks at most of these companies reporting, more likely than not, they're getting a good portion of what they're asking for," Larkin said.