Wide flange beam (WFB) prices are moving up for October shipments, but with scrap prices expected to remain relatively steady this upcoming month, the outlook for November WFB prices looks stable.
Last month Nucor-Yamato announced an increase in net transaction prices for wide flange beams of $0.85 cwt. ($17 /nt or $19 /mt) for October shipments. Effective with shipments as of October 1, 2007, Nucor-Yamato's raw materials surcharge (RMS) is $6.65 cwt. ($133 /nt or $147 /mt). This represents a $0.85 cwt. ($17 /nt or $19 /mt) increase from Nucor's September surcharge. Nucor-Yamato's base prices for October are unchanged, resulting in a net transaction increase of $0.85 cwt. ($17 /nt or $19 /mt).
This most recent price increase is the second in two months. In late August, the company raised its base prices by as little as $0.25 cwt. or as much as $1.50 cwt. for select product families, mainly for larger sized beams.
October published prices for standard sized wide flange beams (ASTM A992, W10 x 10, W18 x 6, W24 x 7) are now all pricing at $39.35 cwt. ($868 /mt or $787 /nt) FOB mill.
With this latest increase, the domestic pricing trend has returned to neutral. Scrap prices are firm and are expected to possibly increase by $10 /long ton at best for October. Though demand for beams in the US is still relatively strong, most sizes are available and the buying frenzy that once was has subsided. The mills still have controlled order entry, but availability is good and lead times are now within reason. Larger sizes are still pretty tight as the non-residential construction market is taking the bulk of these particular sized beams.
Overall, the domestic wide flange beam market is steady and is expected to remain that way in the months to follow.
Imports are scarce, with offers very close to domestic prices. Freight rates have also been increasing, not giving traders any relief to sell their foreign material to US customers at reasonable prices.
Import offers are few and far between, occasionally coming from Taiwan and China.
According to data from the US Import Administration, worldwide export tonnage of H-beams to the US totaled 19,702 mt, 19,805 mt, and 27,401 mt in June, July, and August respectively. Total tonnage for September up to the 25th was 14,285 mt, with Luxembourg the biggest exporter to the US with 6,413 mt, followed by South Korea with 3,468 mt, and Germany with 2,045 mt. According to the available September data, two usual players in the US market, Taiwan and China, shipped a minimal amount of tonnage.