December 2011 | Welded steel tube & pipe
Mixed results in raw materials weigh on welded prices: Asia Market Analysis
Domestic Chinese demand by the construction sector has been slowed and will continue to be hampered over the coming months as well, weighing on the price of welded structurals.
In the Asia region, the rate of decline in raw materials costs leveled off over the past month, yet downstream buyers are looking to get those cost saving passed through to them. Iron ore and coking coal prices posting modest cuts since November. After a $30/tonne decline from October to November, imported iron ore prices into December wavered and only posted declines of $5-10/tonne. Coking coal contract prices settled at $230-235/tonne FOB for hard coking coal and $171/tonne FOB for PCI coal for the coming quarter, dragging down spot import prices as well. Scrap prices, meanwhile, reversed course into December and are climbing again, as the seasonal supply contraction gets underway. Import volumes are low, but prices are headed toward $475/tonne CFR. Nevertheless, steel prices remain in decline in the region, especially in China, as oversupply weighs on a market characterized by falling demand. Spot billet price in the Tangshan...
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