Outages to support higher long product prices
Nov 13, 2013 | 04:25 PM
| Samuel Frizell
NEW YORK The recent round of price increases on long products is likely to be supported by planned maintenance outages at wire rod, merchant bar and rebar mills until year-end, industry sources said.
Most long products mills have scheduled downtime during Christmas week, but some mills have planned extra downtime this month and during Thanksgiving week, putting a potential stopper on supply that could help support price increases.
"Thats part of the strategy: to take time out. Whats happening here is these guys have given up more than a decline in scrap. Theyve dug their heels in; ultimately, they feel they cant let this deteriorate anymore," a wire rod buyer said. "(ArcelorMittal chief executive officer) Lakshmi Mittal restrained supply to hold prices up. Mills have used that strategy for 10 years."....
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