Tag Archives: cold rolled
As Appears on Forbes.com
NEW YORK, June 9 (Reuters) – Shares of some major U.S. steel companies rose on Tuesday and analysts attributed it to rising prices for the flat-rolled steel products made by those manufacturers.
In afternoon trading on the New York Stock Exchange, AK Steel Holdings’ stock was 8.7 percent higher at $18.93, while U.S. Steel Corp rose 5.7 percent to $37.08.
Other steel company stocks were almost flat, although Steel Dynamics was up 3.7 percent on the Nasdaq. The Dow Jones Iron and Steel Index was 3.7 percent higher.
Analyst Michelle Applebaum of Steel Market Intelligence in Chicago said her latest indicator of global flat-rolled steel prices showed they were at their highest level since last June.
‘They (AK Steel and U.S. Steel) are the biggest flat-rolled players and flat-rolled prices globally are on the way up.’
Applebaum’s Advance/Decliner Index, which tracks the ratio between price increases and decreases, was at 77 percent last week. A reading above 50 percent means there are more increases than decreases and generally bodes well for pricing trends, she said.
Steel prices had been falling since last September, as the economic downturn dried up demand for steel and most manufacturers cut production by more than half.
(Reporting by Steve James, editing by Matthew Lewis) Keywords: STEEL/SHARES
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U.S. Steel has been informing their customers of a price increase on all flat-rolled products. The increase is $40 per ton ($2.00/cwt) over their existing spot prices.
This puts the Hot Roll spot base at $55.00/cwt ($1,100 per ton), Cold Rolled at $60.00/cwt ($1,200 per ton), Galvanized at $61.00/cwt base ($1,220 per ton) and Galvalume at $61.50/cwt base ($1,230 per ton). My understanding is the prices are effective September 1, 2008.
Some have suggested U.S. Steel may be “posturing” to fill their August order book. However,some U.S. Steel customers are concerned requests for more tons during August resulted in “no availability” answers.
ArcelorMittal responded later in the day and starting informing their customers they would match the U.S. Steel increase of $40 per ton ($2.00/cwt) on all flat rolled products. However, ArcelorMittal is making the increase on hot rolled coil effective with any new orders for August. Cold rolled and Coated (Galvanized, Galvalume) would become effective on September 1st.
Information courtesy SteelMarketUpdate news.
European hot rolled and cold rolled prices continue to rise. The American Metal Market is reporting that some European mills have already booked hot roll coil orders at $1,187 to $1,234 per metric ton ($53.85/cwt to $55.97/cwt) and cold roll coil at $1,311 per metric ton ($59.47/cwt). These prices are in line with the July and August prices asked by the U.S. mills.
Floods are closing a 216 mile section of the Mississippi to barge traffic due to the flooding in the Midwest. The shut-down is expected to affect barge traffic for up to two weeks. This will affect some domestic mill shipments as well as imported steel shipments coming out of New Orleans and Houston ports.
Steel Business Briefing released The Steel Index of Reference Prices for the week ending May 4, 2008. The new numbers show that the market prices for hot rolled, cold rolled and galvanized have continued to move higher as compared to the week prior.
Hot-rolled prices showed a $5 per ton move to the upside ($.25/cwt). Over the past four weeks, HR pricing has increased by $201 per ton ($10.05/cwt) or 24.8%.
Cold-rolled prices also moved higher. They increased by $11 per ton ($.55/cwt) as compared to the week prior and have moved higher by $190 per ton ($9.50/cwt) over the past four week period or, 20.8%.
Galvanized coil increased by $20 per ton ($1.00/cwt) compared to the previous week. Over the past four weeks galvanized has increased by 19.3%.
Provided courtesy of Steel Market Update ( www.steelmarketupdate.com )