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Cru Steel

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Cru Steel

Prices surge – but cracks in demand appearing

The continued rise of finished steel prices in world markets has seen the CRUspi global index rising by

13% month-on-month in May to reach a new record level of 268.0 – the largest increase in percentage

terms since early 2004.

US Midwest steel sheet prices rose by around 20% in the due to tight supply and a continued absence of

import pressures. Although US sheet prices are currently at a large premium to European and, more

importantly Asian prices, the weakness of the dollar combined with high freight costs, as well as strong

demand in other markets have kept import pressures at bay for now. If sheet prices settle towards the

higher end of recently announced price increases however, it may be that despite these factors, imports do

again become an issue. In the long products market, a spike in scrap prices of between US$147-190/l.ton

caught some producers by surprise, but nonetheless necessitated further increases in finished products

prices. Pricing strategies varied by producer with structurals rising the least, while bar and rod mills were

able to use the quieter import situation to raise prices by between US$150-190/s.ton.

Despite patchy demand, European sheet market fundamentals

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