Outages to support higher long product prices

Nov 13, 2013 | 04:25 PM | Samuel Frizell

Tags  Long products, merchant bar, rebar, wire rod, mill outages, price increases, Nucor, Gerdau Long Steel North America Commercial Metals

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.

"That’s part of the strategy: to take time out. What’s happening here is these guys have given up more than a decline in scrap. They’ve dug their heels in; ultimately, they feel they can’t 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."....





Latest Pricing Trends

Poll

Are you stocking more inventory today than 18 months ago?

Yes
No


View previous results