I had been hearing that steel prices were forecasted to increase and that steel producers stocks were rising as a result. It may just be that they tend to rise at the end of a bull run (since economy is strong and interest rates start rising) as do other metals, chemicals, oils, etc. The article I found in news seemed to counter the idea of rising prices:
WASHINGTON, May 12 /PRNewswire/ -- Imports of stainless steel continue to swamp domestic markets in early months of
1998, according to new data released today by the Specialty Steel Industry of North America (SSINA). For January and
February, imports rose 33 percent, far outpacing a 5 percent market growth.
Import penetration of apparent U.S. consumption of stainless steel for the two month period was 26 percent versus 20 percent
last year.
''Widespread illegal dumping and foreign government subsidization are the continuing core problems. With no abatement and
no multilateral specialty steel trade agreement, they necessarily must be addressed via U.S. trade laws,'' a spokesman for
SSINA said. He noted that several recent petitions have been filed with the U.S. Department of Commerce and the
International Trade Commission (ITC) covering various stainless steel products and are aimed at violations of U.S. trade laws
and international trade rules. (See News Releases dated July 30, 1997; March 27, 1998, and March 31, 1998). Final
determinations are expected beginning in July and will extend into 1999.
Specialty steel imports -- including stainless steel, the largest product line -- more than doubled in the last decade (333,000
tons/1987/797,000 tons/1997).
The Specialty Steel Industry of North America (SSINA) is a Washington, D.C.-based trade association representing virtually
all continental producers of stainless steel and alloy tool steels, electrical steels, super alloys, and other technology materials.
NOTE: Imports, consumption and market penetration statistical data for February 1998 and prior periods for major specialty
steel product lines follow.
U.S. IMPORTS, CONSUMPTION AND MARKET PENETRATION DATA
FOR SPECIALTY STEEL PRODUCT LINES - 1998/1997/1996
February 1998 statistical data follow:
IMPORT
IMPORTS U.S. CONSUMPTION PENETRATION
Specialty Steel YTD Percent YTD Percent
Product Lines Feb. Increase/ Feb. Increase/ Feb. Feb.
1998 Decrease 1998 Decrease 1998 1997
Stainless Sheet/Strip 67,685 28% 319,035 5% 21% 17%
Stainless Plate 11,697 96% 50,728 -3% 23% 11%
Stainless Bar 15,891 48% 42,837 12% 37% 28%
Stainless Rod 13,409 26% 19,509 21% 69% 66%
Stainless Wire 5,073 0% 8,462 5% 60% 63%
Total Stainless Steel
(Sheet, Strip, Plate,
Bar, Rod & Wire) 113,754 33% 440,572 5% 26% 20%
Tool Steel 11,741 23% 19,272 5% 61% 52%
Electrical Steel 15,149 41% 83,672 5% 18% 14%
Total Specialty Steel140,644 33% 543,516 5% 26% 20%
1997 and 1996 statistical data in tons follow:
IMPORT
IMPORTS U.S. CONSUMPTION PENETRATION
Percent Percent
Specialty Steel 1997 Increase/ 1997 Increase/ 1997 1996
Product Lines Decrease Decrease
Stainless Steel
Sheet/Strip 361,387 7% 1,734,651 5% 21% 20%
Stainless Plate 60,553 22% 282,509 16% 21% 20%
Stainless Bar 91,153 22% 251,499 10% 36% 33%
Stainless Rod 80,850 25% 113,052 22% 72% 70%
Stainless Wire 29,897 10% 47,329 1% 63% 58%
Total Stainless Steel
(Sheet, Strip, Plate,
Bar, Rod & Wire) 623,842 13% 2,429,040 7% 26% 24%
Tool Steel 61,333 11% 110,051 -3% 56% 49%
Electrical Steel 111,402 3% 516,765 -2% 22% 21%
Total Specialty Steel796,577 11% 3,055,855 5% 26% 25%
>>>end of article
There may also be anti-dumping actions taken by government also. |
