Semi trailers price raise up 450 USD /unit again since 21th April 2021
You might not know yet, the Steel Market Price Update canvassed the market March. 8-9, and results revealed the benchmark price for hot-rolled steel at a new record high of USD 1,180/t. Prices were up 168% from the August 2020 low of USD 440 per Ton. They also were up 9.3% from $1,080 / ton in March, when the spot price first surpassed the prior record of $1,070/T ($53.50/cwt) published by SMU.
So, again, if not now, when? If not you, who?
Do you know why steel price raise up?
Increase in prices of steel to record levels will impact automobile manufacturers in the coming months as most of them will have to increase prices of steel products, twice in the last 4 months, to protect their operating margins, at a time when demand for truck trailer vehicles has gradually been recovering. Also rise in cases of COVID in important states and consequent restrictions imposed by state authorities are likely to impact customer sentiment.
Most steel and other products manufacturers will not be able to pass on entire rise in input cost as the economy is still not out of the Covid induced slowdown.
“After a slight dip in February 2021 domestic steel prices recovered in March 2021 and are expected to remain elevated over the coming months on the back of higher international steel and iron ore prices. It is anticipated that HRC prices are expected to go up by at least ₹3,500-4,000 per tonne in April 2021. A ₹4,000 per tonne hike will take domestic HRC prices to ₹59,000-60,000 per tonne, which would be the highest level seen since 2008,” said Care Ratings in a note on Tuesday.
China steel price gains; output remains strong despite cuts.
The Chinese city of Tangshan China, a steelmaking hub, it has taken steps to curb steel production in an effort to limit pollution.
However, steel production in China remains robust, and the South China Morning Post noted, reaching a capacity utilization rate of 86%.
Chinese steel prices, at the same time, appeared stronger this past month than their US counterparts.
After falling to around $750 per metric ton in mid of March, the China HRC price surged to $820 by April 1.
From mid of March to mid of April, China HDG, CRC & plate prices increased by double-digit percentages.
Also, Fitch Ratings-Moscow/London-02 February 2021: The recent global rally in steel prices will be short-lived, Fitch Ratings says, with steel trailer prices starting to decline towards the end of 1Q21 as steelmaking production continues to be restarted. Vast steelmaking capacity idled during the heights of the pandemic couldn’t be brought online quickly enough to meet recovering steel demand & restocking, leading to the rapid rise in steel prices.
For the global, However, we do not expect these levels of prices to be sustainable. Steel mills continue to restart quickly with about 30 M tonnes of hot metal capacity back on stream since October. Many idled mills in the US & EU are already in operation, although there is a time lag for production to fully ramp up. We expect prices to drop at some point in 1Q21 to levels closer to historical through the cycle ranges. Steel makers are enjoying high profit margins, with CRU’s implied trailer steel margin exceeding 30% in the EU and 45% in the US in January 2021, although input costs are catching up. High raw material costs may temporarily support steel prices provided, which steel demand is robust again.
“In China underlying demand remains exceptionally strong, even though we’re past peak growth,” said by analyst Serafino Capoferri at Macquarie in London UK.
“The rest of the world is picking up after a horrendous Q2 & Q3, and now we’re seeing steel prices recovering pretty strongly across all regions… I think they will continue to rise up price.”
Also, USA steel buyers are taking a break from the current dizzying surge in steel prices market, but as they tuck into their Thanksgiving meals, many will be wondering what awaits them on their return to the negotiating table.
Following a rapid recovery over the past three months, the price of hot rolled coil had reached USD 700 / short ton by mid of November, to up more than 50 percent from its August low point. Several US producers are now said to be quoting US$840/850 per short ton for new orders. So, what is behind these eye-watering price rises?
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