SBQ buyers worry about oversupply

Jan 21, 2014 | 03:00 PM | Corinna Petry

Tags  steel, Special bar quality, SBQ, production capacity, Republic Steel, Timken, Nucor, Steel Dynamics cold finisher

CHICAGO — Cold finishers, forges and distributors have expressed anxiety about the potential for excess domestic production capacity for special bar quality (SBQ) products, and particularly how an overabundance of supply may affect pricing down the road.

"Capacity increases are of concern," a southeastern distributor source told AMM. "Timken (Co.) brought on more (capacity). Nucor (Corp.) has enhanced its capability to produce more SBQ product. (Steel Dynamics Inc. put on) additional tons and they are kind of the wild card."....

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