November 2011 | Welded steel tube & pipe
Raw materials costs plummet in fourth quarter: Asia Market Analysis
Chinese welded tube and pipe prices in November had nowhere to go but down, and exporters continued slashing prices from last month due to weak demand and falling raw material prices.
From early September into November, the usual post-holiday period when markets pick up, steelmaking raw materials prices plunged on oversupply and poor demand prospects. Overall steel demand looked to be in jeopardy from debt issues in the EU and USA while Asian markets were feeling the effects of a Beijing-cooled Chinese economy affecting import demand and a downturn in exports to the mature markets. Iron ore spot prices fell about $60/tonne from September into early November, but have recovered about $20/tonne in the last two weeks. There is little room for prices to rise beyond this level through the end of the year. Coking coal prices are down about $40/tonne in the past two months while scrap import prices to the Asia region are down $75-80/tonne.
As a result, flat-product steel prices throughout Asia took a hit. Asian HR coil prices declined up to 5% month-on-month...
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