LOS ANGELES Published
prices for steel beams look set to hold steady for the fourth
month in a row, despite what market sources say are continuing
Nucor-Yamato Steel Co.,
Blytheville, Ark., notified customers that it will cut its raw
materials surcharge by $9 per ton and raise its published base
price for wide-flange and standard products by the same amount,
resulting in no change in transaction price, effective March 1.
The decision will leave its published f.o.b. mill price on most
core sizes of wide-flange beams at $780 per ton ($39 per
Nucor Corp.s Berkeley,
S.C., beam mill also notified customers of similar
Earlier this month, AMM reduced its consumer buying
price for shredded automotive scrap in the Chicago market,
often used as a component of mills surcharges, by $9 per
ton to $377 per ton (
amm.com, Feb. 7).
While a number of buyers agree
that much, if not most, beam tonnage is moving out of the mills
at list prices, market sources continue to report instances of
price-cutting for larger tonnages that, on a delivered basis,
reflect a discount of up to $1.50 per ton off the published
f.o.b. mill price.
Some market participants say
that pressure on pricing isnt being initiated by the
mills but rather by distributors, who are "panicking" as demand
remains slow in most regions.
"I think the pressure is on the
resale market due to a lack of business," a source in the
Meanwhile, early data on
February import permit applications for wide-flange and
standard beams4,600 tonnes through Feb. 12indicate
a likely drop from 31,100 tonnes expected to arrive in January.
A falloff wouldnt be considered unusual, since the first
month of the quarter has lately tended to be the largest in
terms of arrivals. However, Russia, which hasnt been
included in import data for at least the previous three months,
accounted for nearly 70 percent of all the February
applications submitted so far at about 3,200 tonnes.