bar quality contracts for 2014 are expected to be agreed at
similar price and volume levels to those seen in 2013,
according to some producers, distributors, cold finishers and
end users who have begun negotiations.
negotiating right now (on SBQ) prices for the first quarter of
2014," Steel Dynamics Inc.s Richard Teets, president and
chief operating officer for steel, told investment analysts
during an earnings conference call. "Were always under
pressure, but were trying to hold the line and extend the
current pricing. Well see where it all falls out, but our
position is that things are still good and wed like to
see it (bar pricing) extend where its at."
Some bar customers are
slower than usual to commit, however, a source at a national
distributor based in the Southeast told AMM. "In the
bar business, some (customers) are asking what will happen with
the additional (production) capacity," he said, so the inking
of supply deals "is not going as well as wed like.
Its not locking down as it has traditionally. Customers
are pushing it further down the road. Its going to remain
A forging executive
said his company has not started supply contract talks yet. "If
there is a price increase (expected), they like to talk early.
If not, theyll get to you by Christmas," he said.
"We are starting to
work with original equipment manufacturing customers to put
together blanket orders," a source at a producer of cold-drawn
shapes said. "We are having a late start (to talks), but we
should have (contracts in) by late October and early
The quantities for
2014 contracts are expected to be similar to this year, he
said. "Our two largest customers told us not to plan for any
growth (but) we hope they are wrong (and need more