Product
January 7, 2013
Written by John Packard
Platts may be providing a hint as to what we will see coming from the other indices as we enter a full week. SMU did see weakness in our steel survey but we have decided not to make any adjustments in our index until Tuesday evening since last week was 1) a short week and, 2) the first week back from holiday. Steel Orbis and SteelBenchmarker were both silent and CRU only had minor adjustments.
In my previous column on April 23, I posed a question: whether supply can respond sufficiently under current conditions. Since then, the US HRC futures curve has continued to move higher and further out.
This Premium analysis examines oil and natural gas prices, drill rig activity, crude oil stock levels, and fuel prices through May.
Domestic plate market participants named extended lead times, increased freight costs, escalating fuel surcharges, and spotty demand as their most recent challenges.
Earlier this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events.
After a brief dip last month, iron ore prices have resumed their upward trajectory as the war in the Middle East escalates. Elevated costs have established a new pricing norm, keeping iron ore prices firm even as current levels exceed what supply‑demand balance would justify. Meanwhile, Simandou is finally gaining momentum after a slow start. Quality remains the decisive factor for steelmakers sourcing from the seaborne market, reshaping trade flows.