Steel Industry Insight
The trade flows of few steel products have been affected as much by the impact of US trade laws as supply and demand in the market.
Demand, or a lack thereof, finally caught up with reality and HRC prices have crashed down to earth, dropping about $160/mt in the process. A lot of the earlier, pent-up demand happened because of “restocking” inventory. Guess what? Latest surveys of steel consumers show a high inventory level.
South America’s top steelmakers strategize for success. The South American steel industry is at a turning point. After surviving the worldwide economic downturn relatively unscathed, it has proven itself not only strong on the domestic front, but a growing powerhouse on the global stage.
ecent events must have reinforced your doomsday scenario, Mr. Gloom. First we had (and still have) turmoil in the Middle East, which caused crude oil prices to skyrocket yet again and slowly approach 2008 levels. The massive earthquake/tsunami in Japan has put the world’s third largest economy on ice for the time being.
Globalization: it’s a trend that’s celebrated and despised, welcomed and protested, anticipated and ignored. But despite the wide range of opinions on the subject, most can agree that globalization is very much a new world order, a further step in the evolution of human civilization.
As of mid-March, the last antidumping (AD) and countervailing duty (CVD) petition involving steel products had been filed more than 14 months prior—on December 31, 2009. It involved drill pipe from China and resulted in AD and CVD orders which were issued at the beginning of March 2011.
What a promising start to 2011! Even though rapidly-rising steel prices have been met with a measure of restraint, and the robust levels of purchasing activity were largely based on inventory restocking, the situation did not necessarily inflate into a bubble as many predicted early in the year.
It goes without saying that the steel industry needs the scrap industry; without an abundant supply of leftover steel from consumers, manufacturers and demolishers, steel plants would have to rely entirely on iron ore for their raw material. Sure, iron ore is more pure than scrap and can produce higher-quality steel, but it’s costlier to […]
he last time we spoke, Mr. Bull, you advised me to look out for your steaming freight train that was about to hit, or at least arrive, in Q1 2011. I have been on the lookout ever since, straining my eyes and even buying more powerful binoculars.
The biggest news in the international scrap market involved the mid-winter Australian floods that devastated the country’s coal industry and also severely affected iron ore mining. With reduced supplies flowing into the global marketplace, integrated steelmakers are expected to compensate with an increased focus on scrap, which would spike worldwide demand and, most likely, prices […]