UK based MEPS International said that hot rolled coil buying activity in the US increased ahead of the recent price hikes but delivery lead times have not extended to any great degree as supply is plentiful and real consumption is sluggish. Nevertheless, the figures in MEPS December 2011 edition of the International Steel Review are up by over 8% for new orders and producers want to charge even more in January 2012.

Reversing mill plate transaction figures have advanced over the last month, at least partially reflecting the mills’ proposals for a USD 30 per tonne rise. A number of projects requiring plate in the energy, mining, pipe and agricultural machinery sectors are ongoing. There is not a lot of new import pressure but Russian and Taiwanese suppliers are quoting for late February shipment at around USD 920 per tonne.

Mill proposals for higher transaction values for cold rolled coil have succeeded in lifting figures by over 7%, reversing the negative tendency of the last few months. However, buyers are still cautious about rebuilding stocks in the current economic climate.

Demand for galvanized coil from the US auto sector remains buoyant but orders from the construction industry show no real signs of revival. Last month's price hike announcements have been accepted. The mills are now planning further advances for January 2012.

Import competition is likely to increase because transaction values in the US market remain above those in other countries. Nevertheless, some inventory building is anticipated in the first quarter which should help boost selling figures in this period. MEPS forecasts that US steel prices will slip in the second half of 2012.

(Sourced from MEPS - International Steel Review)