Steel Companies trying to raise steel prices

I was surprised to find this in my inbox today. Raising prices in this economy? Whatever are the steel mills thinking?

A very slow, very tentative recovery just might be leaving the train station in the next 3 months. Let’s do everything we can to just nip that in the bud by raising prices into a slow, painful, crippled recovery!

FROM MEPS

Major steelmakers in the US have announced a series of transaction price hikes over recent weeks for strip mill products. These are steadily being implemented. There is little import competition to prevent further increases being applied. Certainly, distributors are keen for the proposed rises to take hold as they will produce benefits in terms of stock valuation. Nevertheless, market players are concerned that the price recovery might not be sustainable if the mills prematurely restart idled facilities. Service centre business is still down by 40/50 percent with only a small percent increase in activity, most probably due to the price advances. The economy remains depressed, leading to a persistently low level of steel consumption.

Canadian transaction values have bottomed, prompting us to record a number of rises this month. The domestic mills believe that destocking may be complete.

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3 Responses to Steel Companies trying to raise steel prices

  1. Hello, Michael —

    My name is Jeff Charboneau, and I am a writer and editor for Welding & Gases Today, the quarterly journal of the Gases and Welding Distributors Association (GAWDA).

    We have created GAWDAwiki http://www.gawdawiki.org/ an online resource for the gases and welding industry. GAWDAwiki is a comprehensive collection of welding and industrial/medical/specialty gases terminology, videos, white papers and other information about the industry. GAWDAwiki also features breaking industry news, updated daily. A key part of GAWDAwiki is an encyclopedia of terms related to welding and gases (http://www.gawdawiki.org/gwiki/index.php/Main_Page).

    We’re looking to cross-link our wiki with allied industry sites such as the stamping out a living blog. Would this be of interest to you?

    Mu apologies for sending this message as a blog comment, but I could not find any contact information on your site.

    Many thanks.

    Jeff

  2. Michael says:

    Jeffrey: Thank you for your post. I didn’t realize it but my email address was obscured. This has been fixed. And I created a link to your wiki.

    P.S. your blogger profile also has no contact information.

  3. This comment has been removed by a blog administrator.

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