ARCHIVE FOR NOVEMBER, 2006
Stainless Centers Keep a Lid on Stocks; Demand is StrongNovember 15th, 2006 / Stainless Steel
Unlike the carbon side of the steel industry, stainless service centers are keeping tight reins on inventory, though mills aren't limiting production. Executives at the stainless service centers say they're keeping a smaller inventory than normal. The smaller inventories are not because of a lack of demand, but the surcharge cost. Centers say keeping too much inventory on hand can be dangerous to the bottom line if nickel prices take a dive and the metal can't be sold for as much as it was purchased. Right now, mangers are buying what they need and are not taking on any long positions.
The stainless mills' December surcharges jumped about 10 cents a pound as a result of an increase in the cost of nickel.
Excerpts from American Metal Market. November 9, 2006.
Copper Scrap Prices Decline as Offshore Sales Lose SteamNovember 15th, 2006 / Copper Foil/Sheet
Prices for higher grades of copper scrap have edged lower as primary metal on the Comex division of the New York Mercantile Exchange comes under downward pressure and a pickup in overseas demand fails to meet expectations. The brass ingot makers' No. 1 and No. 2 copper scrap fell 3 cents across the East and Midwest. Prices for most of the lower grades have not changed significantly as demand from Chinese consumers holds steady. But despite flashes of aggressive buying, traders said the demand hasn't yet reached forecast levels. The downturn in the automotive and housing industries continues to reduce demand for copper-based products.
Excerpts from American Metal Market. October 31, 2006
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