Steelman Software for Steel and Metal Service Centers

HOT ROLLED COIL

US steelmakers report good order books but some buyers, sensing that transaction figures may be nearing the peak, have become more cautious recently. Today’s prices are 7.6 percent above the January numbers with delivery lead times into late March. There may be further advances in the short term. Currently, Canadian mill delivery lead times are out to April in most cases, although overall consumption is still weak. The producers continue to signal upward movement on transaction values, which have gained another $US40 per tonne since our last report. More increases are anticipated. However, the rises are clearly cost driven and not demand based.

The Chinese market became quiet at the start of this month as business activity wound down ahead of the Chinese New Year. Prices have undergone a 2.7 percent downward correction since our last report, undermined by ever growing inventories. Transaction values have bottomed out in Japan. Tokyo Steel’s decision to lift its list prices for February contracts had a positive effect on market demand. Pickled and oiled material is difficult to source.