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Higher N. American Steel Prices Could Lead to Surge in Imports
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Currency Day Trading (AXcess News) London - According to MEPS, steel people spend a lot of time talking about how the industry today is truly global. Developments in one part of the world impact trading conditions everywhere. One result of this is that steel prices in the various regions tend to move in roughly the same direction at the same time.
The Revenue Act of 1767, better known as the Townshend duties, taxed American imports of glass, lead, paper, paint, and tea.
Financial Software Trading But just at present the opposite is happening. MEPS analysis shows that strip product prices in Europe are basically flat, while they are rising in North America and going down in Asia. Last month's values in these three regions were within about $US10 of each other. This month there is a range of almost $US100 per tonne between the lowest (Asia) and the highest (North America).
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Online Stock Trading Company Looking at average transaction prices for hot rolled coil, September values in the European Union stand at just below $US500 per tonne, only a few dollars different from last months figure. EU prices have lost more than $US200 per tonne over the course of this year and continue to languish, pending a correction of the stock surplus.
A cash asset or an asset that is easily converted into cash. Released monthly, this figure measures the difference between imports and exports. When exports are higher than imports, there is a surplus in the balance of trade. When imports are higher than exports, there is a deficit. export differential is referred to as the trade gap.
Forex Day Trading In Asia, the average hot rolled coil price this month is around $US480 per tonne, down by almost $US20 per tonne month-on-month and more than $US100 per tonne since the peak earlier this year. The price has been depressed by the continued build-up of additional production capacity in China, over-stocking and increasing Chinese exports.
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Financial In Market But in North America, the September hot rolled coil price jumped by almost $US70 to $US580 per tonne. This is partly because of increased raw material surcharges related to higher scrap prices. There are also signs of higher demand, as orders are being quickly placed for steel needed for reconstruction work after the recent hurricane.
Stock Trading System Raw material surcharges look like increasing again in October because North American scrap costs have strengthened further. This is partly because of disruption to supplies of scrap and other raw materials caused by the hurricane.
Day Trading Stock Tip The current divergence in prices globally is quite unusual. International trading in steel is a highly developed business, and the flow of trade around the world tends to smooth out uneven price patterns. Recent increases in ocean freight rates up 75 percent since the start of August may mean this correction takes a little longer to occur.
Financial Forex Forex Software Source: MEPS - International Steel Review
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