International Steel Prices
OAO Severstal Sees World Steel Prices as Having Bottomed
Written by Sandy Williams
November 17, 2013
Global steel prices may have finally bottomed out, said Severstal CFO Alexey Kulichenko. Severstal sees a slow recovery in store for 2014 with steel prices similar to those in 2013.
“We don’t really believe there is more room for going down, so we think on average maybe we have reached the bottom,” said Kulichenko said in an interview on Thursday. “With overcapacity in place, and with the behaviour that we observe, we don’t believe there will be quick sustainable growth in the short term. We think it will be a slow, gradual movement from this level up.”
Over production has been a problem for the industry resulting in industry leaders like Severstal CEO Alexey Mordashov calling for capacity cuts.
When asked if the industry could comply given political pressures in Europe to keep workers employed and China’s increasing production and export levels, Kulichenko replied,” I don’t believe it could easily happen.”
Severstal has expressed no interest in expanding capacity next year and is cautious about consolidating, saying synergy is more important than size.
“We do not really believe today that investment in steelmaking is paying, and for us it means we are focused on internal efficiency and improvement rather than putting more volumes to the market in this environment,” said Kulichenko.
Severstal plans to cut expenditures from $1.3 billion to $1 billion in 2014, with more than half of that to be spent on maintenance. (Source: Reuters)
Sandy Williams
Read more from Sandy WilliamsLatest in International Steel Prices
Imported CR still cheaper despite lower US prices
The price gap between US cold-rolled (CR) coil and imported CR has fallen to a 10-month low as domestic tags continue to drift lower. Domestic CR coil prices averaged $920 per short ton (st) in our check of the market on Tuesday, July 16, down $40/st from the week before. CR tags are now down […]
US HRC prices fall more than 10% below imports
US hot-rolled (HR) coil prices this week drifted further below offshore hot band prices on a landed basis. The premium is now near a two-year low. SMU’s check of the market on Tuesday, July 16, put domestic HR coil tags at $640 per short ton (st) on average, down $10/st from last week. Stateside hot […]
Imported CR still cheaper despite declining US prices
Offshore cold-rolled (CR) coil remains cheaper than domestic product. The gap continues to tighten, however, as US CR coil prices slip to a nine-month low. Domestic CR coil tags averaged $960 per short ton (st) in our check of the market on Tuesday, July 9, down $5/st from the week before. CR tags are now […]
CRU: Sluggish plate demand weighs on prices
Global Plate prices declined in all regions this week amid slow seasonal demand. With bearish outlooks on demand in the near term, market participants are watching how mills will react to low order entry levels and short lead times. In the US and China, production has been steady, but in Europe, steel mills are contemplating […]
Sliding US HRC prices fall further below imports
US hot-rolled (HR) coil prices continued to drift lower this week, falling further below imported hot band tags on a landed basis. SMU’s check of the market on Tuesday, July 9, put domestic HR coil tags at $650 per short ton (st) on average, down $15/st vs. last week. Domestic HR coil prices are now […]