US wide flange beams market – Nucor keeps base prices stable, ups RMS

To reflect the June increase in shredded scrap prices, Nucor has raised transaction prices for wide flange beams by $8 /nt ($9 /mt or $0.40 cwt.), effective July 1. Domestic prices for standard sized wide flange beams (ASTM A992, W10 x10, W18x6, W24x7) will range from $33.25 cwt. to $33.50 cwt. ($733 /mt to $739 /mt or $665 /nt to $670 /nt) FOB mill starting July 1. The domestic pricing trend for beams is still up, though Nucor did not increase its base prices as they had been doing for the past few months. However, this doesn't necessarily mean that the market is not strengthening; Nucor, and other domestic producers, may be keeping prices stable for a short while in order to deflect customers from buying cheaper-priced imports instead. Still, they can't complain about the market conditions. Strong demand and slim inventories indicate that the domestic market is still strong. Lead times are extending further, and rollings for almost all sizes are completely booked up and closed until late September. The pricing trend for import beams is also still up, as offering prices in the market have increased by approximately $1.50 cwt. ($33 /mt or $30 /nt) since last month. Import prices for standard size wide flange beams now range from $30.50 cwt. to $32.00 cwt. ($672 /mt to $705 /mt or $610 /nt to $640 /nt) FOB, loaded-truck East and Gulf Coast ports. Usual import sources are Arcelor mills from Spain, Luxembourg and Germany, Mittal's mill in Poland, and Acominas in Brazil. Also, Russian and Taiwanese beams are now being seen in the market. Chinese offers have been limited, as they are only offering a few sizes, but as the Chinese market picks up, offers from Asian markets should slow down. Preliminary license data from the US government shows that in the month of May 2006, the top five countries from which the US imported heavy structural shapes (a category which includes beams, as well as some of the large channels and angles) were: Russia, at 26,768 mt; Canada, at 14,798 mt; Taiwan, at 14,764 mt; Mexico, at 5,404 mt; and Germany, at 5,087 mt.