Latest forecast on Asian Steel Prices from MEPS reported:-
“In the flat products category, we still cannot see any short term solution to the chronic over supply situation in the region. Production cuts have been made in Japan, South Korea and Taiwan. However, more action is needed in China to redress the imbalance between supply and demand. This may be partially achieved by higher export volumes to the North American and EU markets. Significant price cuts are anticipated in January. The only positive note on pricing in Asia is that the rate of decline should ease and a modest upturn in prices is possible in the second half of 2006. We believe that drastic action to curb output growth will be taken in China during the first half of this year. Moreover, higher export activity will ensue from all the main Asian steel producing countries.”
They go on to say that recent price falls are not taken in to account in this forecast.
It is almost certain that despite the cuts in production within the EU and North America, that Asian exports will have a negative impact on overall prices. Whether or not this will effect will slow or halt in the second half is a matter of speculation.
In contrast to standard steel strip, it would appear that the price for galvanized products are rising as a result of the increase in zinc costs.
On Jan. 17, the Hamilton-based company will seek a judge's final approval to begin implementing its restructuring plan. If approved, the plan will pull Stelco out of two years of bankruptcy-court protection. If I understand the situation correctly, it is likely that existing stockholders’ will realise no value for their shares as Michael over at Stamping out a living, reported back in December. I would welcome the views and comments of anyone more familiar with the ongoing situation with Stelco.
Stelco Inc. is Canada’s largest and most diversified steel producer, with an annual steelmaking capability of 5.9 million tons. The other major producer Dofasco is currently the subject of a bidding war between Thyssen-Krup and Arcelor.
Off topic, but of interest to me! I produce this blog on two platforms, ie blogger and Wordpress. I am looking at moving the Wordpress version from my internet provider to a new (and more stable) location. I have installed Wordpress 2 on the new platform, and would welcome any advice on an easy way to “back up” my old database and transfer the information to the new location. Is there anyone out there can help me with this?