Steel Brief

December 2009

 

 

There are several contradictions in the current steel market along with one constant: steel producers keep raising prices.

 

The contradictions:

 

US domestic steel production has declined each of the last two weeks in November suggesting falling demand. 

 

In the December 1st Wall Street Journal, Goldman Sachs raised its rating of the steel industry to "attractive" from "neutral" in part on improving outlook for demand.

 

US steel makers are quietly downsizing again; taking mills down for maintenance or shuttering them permanently suggesting falling demand.

 

                US imports of sheet steel increased in October over September suggesting increasing demand.

 

The constant:

 

US steel producers just announced another $30/ton ($0.015/lb) price increase effective with shipments January 1 2010.  This makes increases of $240/ton ($0.12/lb) since June 2009.

 

One more constant:

 

MiTek works diligently every day to find the lowest possible cost steel so as to provide the greatest value to you.

 


 This page last modified on 12/8/2009