Steel Price Volcano Blow-Out!

The world market for hot-rolled band (HRB) is erupting. The outlook is unsettled, unpredictable and explosive. The world export price has entered an unprecedented danger zone, up $120 per tonne since the start of 2008 to about $720 per tonne, FOB the port of export. Our contacts say that thin-gauge hot-rolled band (about 2 mm thick) is even harder to find and that the export price has apparently climbed $160 per tonne since early January to about $800 per tonne. Steel slab is now priced at about $600 per tonne, FOB the port of export (with the price varying based on the freight costs to the customer) and is also in tight supply. Also, reflecting soaring steel scrap prices, the prices of billet and long products have surged over $150 per tonne on the world market. Will the next phase be a gradual subsiding or a violent blow-off? It is difficult to call.

For a full copy of our report, please click here for information on becoming a WSD subscriber.