New York (Platts)--29Aug2011/1159 am EDT/1559 GMT
Gerdau Long Steel North America plans to raise transaction prices of steel reinforcing bar by $20/st for mill shipments starting September 19, according to a letter sent to customers Friday and seen by Platts on Monday.
Gerdau said "market conditions" drove the price increase, adding that it would "continue to monitor the market ... and reserve the right to make adjustments to maintain our competitive position across all Gerdau Long Steel product lines."
Gerdau last adjusted prices July 1. It originally proposed raising prices of rebar prices by $30/st but later revised that figure to $20/st, matching price hikes that competitors have announced. Transaction prices remained flat in August.
The current Platts price assessment for US-made No. 6 rebar remained steady Monday, selling in a range of $720-740/st ex-works Southeast mill.
Tampa, Florida-headquartered Gerdau is the second largest producer in North America of steel rebar, wire rod and other long products. Charlotte, North Carolina-based Nucor is larger.
Wednesday, August 31, 2011
ferrous scrap prices
The Platts price assessment for shredded ferrous scrap exported in containers fell $7.50/lt Tuesday to a new midpoint of $455/lt FAS East Coast ports, bringing it more into line with domestic shredded prices.
The Platts price assessment for domestic shredded scrap was unchanged Tuesday at a midpoint of $452.50/lt delivered to Midwest mills.
Meanwhile, a Northeast scrap broker said that current offers for containers FAS East Coast "should be $450/lt for shred."
"My company has been very active, India is still buying," he said, adding that landed selling prices are now $495-508/lt CFR.
Sales of US shredded ferrous scrap into India have continued, but prices have receded slightly from a peak of about $510/lt CFR. The Northeast broker explained that Indian buyers are looking for the least costly scrap source. They negotiate between suppliers in the US and UK, which this week lowered offers into India, likely dragging down ex-US pricing as well.
"The UK dropped offers last week to below $500 (CFR India), so I think you will see downward pricing out of the US this week," he said.
A Southeastern scrap dealer has also seen prices for exported shredded slide just a little. Last week, he sold at $465/lt FAS Port of Savannah, Georgia. Now, he said, "$460/lt is very doable."
Demand for US material continues from offshore, he said, as well as from domestic mills, which must compete on price or lose tonnage to exports.
The Southeast dealer said he expected domestic ferrous pricing to remain at August levels, with a slight chance for a small increase. "I think if they [mills] were offered level [pricing] they would take it," he said.
"There's lots of talk sideways ... but also some resistance; some [scrap sellers] think it should be up $5-10."
Scrap supply-side challenges are underpinning prices in the US, he said. "Supply is still driving it. There is not an abundance of material," he added, echoing sentiments ranging from the Northeast to the Midwest US.
Scrap dealer margins are being compressed, he explained, as the cost to bring material into his yard has increased even as mills have enjoyed stable raw material pricing for the past two to three months.
The Platts price assessment for domestic shredded scrap was unchanged Tuesday at a midpoint of $452.50/lt delivered to Midwest mills.
Meanwhile, a Northeast scrap broker said that current offers for containers FAS East Coast "should be $450/lt for shred."
"My company has been very active, India is still buying," he said, adding that landed selling prices are now $495-508/lt CFR.
Sales of US shredded ferrous scrap into India have continued, but prices have receded slightly from a peak of about $510/lt CFR. The Northeast broker explained that Indian buyers are looking for the least costly scrap source. They negotiate between suppliers in the US and UK, which this week lowered offers into India, likely dragging down ex-US pricing as well.
"The UK dropped offers last week to below $500 (CFR India), so I think you will see downward pricing out of the US this week," he said.
A Southeastern scrap dealer has also seen prices for exported shredded slide just a little. Last week, he sold at $465/lt FAS Port of Savannah, Georgia. Now, he said, "$460/lt is very doable."
Demand for US material continues from offshore, he said, as well as from domestic mills, which must compete on price or lose tonnage to exports.
The Southeast dealer said he expected domestic ferrous pricing to remain at August levels, with a slight chance for a small increase. "I think if they [mills] were offered level [pricing] they would take it," he said.
"There's lots of talk sideways ... but also some resistance; some [scrap sellers] think it should be up $5-10."
Scrap supply-side challenges are underpinning prices in the US, he said. "Supply is still driving it. There is not an abundance of material," he added, echoing sentiments ranging from the Northeast to the Midwest US.
Scrap dealer margins are being compressed, he explained, as the cost to bring material into his yard has increased even as mills have enjoyed stable raw material pricing for the past two to three months.
Tuesday, August 30, 2011
polystyrene prices
London (Platts)--30Aug2011/651 am EDT/1051 GMT
Ineos Styrenics said Tuesday it would seek a Eur30/mt ($43/mt) increase in polystyrene prices in Europe, effective September 1, to restore margins.
Since the start of the second quarter, polystyrene net contract prices have fallen by Eur260/mt from Eur1,540/mt in March to Eur1,280/mt FD NWE in July, while styrene monomer contracts have fallen Eur222/mt since then, according to Platts data, as both demand and feedstock costs fell.
This represents a Eur38/mt margin erosion for producers.
The year-to-date 2011 margin decrease contrasts markedly with 2010 when polystyrene producers made a Eur118/mt margin gain as the Eur349/mt increase in polystyrene prices contrasted with a Eur231/mt gain in styrene contracts.
Although feedstock spot prices started to rise at the start of August, they have since fallen again as derivative demand is expected to remain weak through the third and fourth quarters, according to sources.
Some polystyrene producers said last week they expected the styrene contract to either rollover or fall in September.
Ineos Styrenics said Tuesday it would seek a Eur30/mt ($43/mt) increase in polystyrene prices in Europe, effective September 1, to restore margins.
Since the start of the second quarter, polystyrene net contract prices have fallen by Eur260/mt from Eur1,540/mt in March to Eur1,280/mt FD NWE in July, while styrene monomer contracts have fallen Eur222/mt since then, according to Platts data, as both demand and feedstock costs fell.
This represents a Eur38/mt margin erosion for producers.
The year-to-date 2011 margin decrease contrasts markedly with 2010 when polystyrene producers made a Eur118/mt margin gain as the Eur349/mt increase in polystyrene prices contrasted with a Eur231/mt gain in styrene contracts.
Although feedstock spot prices started to rise at the start of August, they have since fallen again as derivative demand is expected to remain weak through the third and fourth quarters, according to sources.
Some polystyrene producers said last week they expected the styrene contract to either rollover or fall in September.
Monday, August 29, 2011
Butadiene prices
Houston (Platts)--24Aug2011/622 pm EDT/2222 GMT
ExxonMobil and LyondellBasell nominated their September contract prices for butadiene Wednesday at 180 cents/lb and 175 cents/lb, respectively, according to a market participant.
The Exxon nomination was at a 6-cents discount to the August contract price, which settled last month at 186 cents/lb.
The September nomination at 175 cents/lb by Lyondell was at a rollover from the August price.
Recently, US butadiene spot prices had fallen over the week on sluggish demand, with the last offer heard Monday at 181 cents/lb and the market last pegged Wednesday at 175 cents/lb, according to various sources.
The two remaining producers, TPC and Shell, have not yet released their nominations, said a source. Exxon and Lyondell could not be reached for comment by the time of publication.
ExxonMobil and LyondellBasell nominated their September contract prices for butadiene Wednesday at 180 cents/lb and 175 cents/lb, respectively, according to a market participant.
The Exxon nomination was at a 6-cents discount to the August contract price, which settled last month at 186 cents/lb.
The September nomination at 175 cents/lb by Lyondell was at a rollover from the August price.
Recently, US butadiene spot prices had fallen over the week on sluggish demand, with the last offer heard Monday at 181 cents/lb and the market last pegged Wednesday at 175 cents/lb, according to various sources.
The two remaining producers, TPC and Shell, have not yet released their nominations, said a source. Exxon and Lyondell could not be reached for comment by the time of publication.
titanium dioxide prices
WILMINGTON, Del., Aug. 18, 2011 /PRNewswire/ -- Effective Oct. 1, 2011, DuPont Titanium Technologies announces a net price increase of $500 (USD) per metric ton for all DuPont™ Ti-Pure® titanium dioxide grades (TiO2) sold in Asia Pacific.
caustic soda prices
Tokyo (Platts)--26Aug2011/229 am EDT/629 GMT
Japan's Showa Denko will increase its local list prices of caustic soda by Yen 12/kg ($156/mt) for shipments from September 15 to reflect rising fuel costs since early this year, the company said Friday without providing effective prices.
Showa Denko has a 100,000 mt/year caustic soda plant in Kawasaki, eastern Japan.
According to Platts data, the FOB Singapore 380 CST high sulfur fuel oil price averaged $659.64/mt in July, compared with $479.57/mt in January
Japan's Showa Denko will increase its local list prices of caustic soda by Yen 12/kg ($156/mt) for shipments from September 15 to reflect rising fuel costs since early this year, the company said Friday without providing effective prices.
Showa Denko has a 100,000 mt/year caustic soda plant in Kawasaki, eastern Japan.
According to Platts data, the FOB Singapore 380 CST high sulfur fuel oil price averaged $659.64/mt in July, compared with $479.57/mt in January
STEEL BILLET prices
The London Metal Exchange's billet futures contract stands to shed stock from its global warehousing network after one major player canceled up to 75% of the physically-delivered contract's warranted tonnage Monday to sell material in the physical market, participants said Friday.
More trading houses participating in the futures contract joined the cancellation spree Tuesday, when canceled warrants reached 46,930 mt, or 84% of the total 55,380 mt LME billet stock, according to a source close to the activity.
Total stocks in the exchange's registered warehousing network have fallen every day but one since Monday, finishing the week at 54,015 mt -- the lowest since August 16.
Users of the contract hoped that the cancellation signaled warranted billet being moved to a different warehouse, perhaps having found better incentives from another warehousing firm.
Even the possibility of the material being re-warranted at the same warehouse was talked about; but this is not the case, in small part due to charges for putting material back on warrant at warehouses, according to the source.
Now that the cash price on the LME contract has risen to $690-700/mt on a bid/ask basis -- compared with physical billet offers of $700-710/mt CFR Turkey from Black Sea suppliers -- the trading house will sell warehouse material to roll into reinforcing bar and other long products
A billet shortage in major commercial trading areas such as the Black Sea has driven up prices.
"The LME billet price was too low [compared with the physical market price] so people bought onto the contract a few months ago," the source said. "Those same people are now selling material they bought then on the physical market; unless the LME price rises to better reflect the physical market, this will continue to happen."
The LME cash price has risen to now better represent the price of buying physical billet and shipping it into warehouse, another source close the situation added.
This view is shared by other traders using the contract.
"I don't think what [the trader canceling warrants] has done is irresponsible: the movement of the contract into regions where there is no commercial billet trade diluted the LME cash price; weakening it and this has led to the situation this week," a third source said.
"Since the market moved away from Turkish and Black Sea markets to include warehouses where there is no major commercial trade such as the US and Western Europe, the differential between the LME cash price and the physical market widened to around $100/mt," the second source said. "Then somebody bought a lot of futures, sending the cash price up; this isn't helpful for the development of the contract though."
Interest in the contract from billet producers has been thin, and, after the illiquidity of the LME contract was exposed this week, it's unlikely to win any more favor among steel mills, the third source said.
More trading houses participating in the futures contract joined the cancellation spree Tuesday, when canceled warrants reached 46,930 mt, or 84% of the total 55,380 mt LME billet stock, according to a source close to the activity.
Total stocks in the exchange's registered warehousing network have fallen every day but one since Monday, finishing the week at 54,015 mt -- the lowest since August 16.
Users of the contract hoped that the cancellation signaled warranted billet being moved to a different warehouse, perhaps having found better incentives from another warehousing firm.
Even the possibility of the material being re-warranted at the same warehouse was talked about; but this is not the case, in small part due to charges for putting material back on warrant at warehouses, according to the source.
Now that the cash price on the LME contract has risen to $690-700/mt on a bid/ask basis -- compared with physical billet offers of $700-710/mt CFR Turkey from Black Sea suppliers -- the trading house will sell warehouse material to roll into reinforcing bar and other long products
A billet shortage in major commercial trading areas such as the Black Sea has driven up prices.
"The LME billet price was too low [compared with the physical market price] so people bought onto the contract a few months ago," the source said. "Those same people are now selling material they bought then on the physical market; unless the LME price rises to better reflect the physical market, this will continue to happen."
The LME cash price has risen to now better represent the price of buying physical billet and shipping it into warehouse, another source close the situation added.
This view is shared by other traders using the contract.
"I don't think what [the trader canceling warrants] has done is irresponsible: the movement of the contract into regions where there is no commercial billet trade diluted the LME cash price; weakening it and this has led to the situation this week," a third source said.
"Since the market moved away from Turkish and Black Sea markets to include warehouses where there is no major commercial trade such as the US and Western Europe, the differential between the LME cash price and the physical market widened to around $100/mt," the second source said. "Then somebody bought a lot of futures, sending the cash price up; this isn't helpful for the development of the contract though."
Interest in the contract from billet producers has been thin, and, after the illiquidity of the LME contract was exposed this week, it's unlikely to win any more favor among steel mills, the third source said.
LLDPE, HDPE film prices
Initial September PE prices in Asia have been announced with decreases from August, although the market remains under downward pressure as most buyers expect further decreases in the coming weeks and remain unwilling to purchase for now, as per ChemOrbis. Trading activity remained extremely limited this week in both China and Southeast Asia as buyers are hesitant to replenish stocks given widespread concerns about the health of the global economy. Converters in China complained that the start of the traditional high season for agricultural film has not led to any real improvement in demand over the past few weeks.
Import LLDPE film prices for September have been announced with decreases of US$30-100/ton in China. Few September prices for HDPE film were reported with rollovers this week. Producers complained that their new offers are meeting with little interest from buyers even after their price reductions, with only a few deals reported towards the lower end of the overall offer range. Inside China, domestic producers conceded to decreases of CNY100-600/ton ($16-94/ton) towards the end of this week in the face of persistently poor buying interest.
In Southeast Asia, import PE prices dropped at the lower end of the range this week as Middle Eastern producers returned to the market with decreases on September prices. A Saudi Arabian producer reduced their September prices by US$20/ton for HDPE film and US$30/ton for LLDPE film while complaining that their new offers are not being met with much interest from buyers despite prices being competitive when compared with other import origins. In the region's local markets, players in Indonesia experienced sales slowdown this week despite a cut by domestic producers by US$20/ton for HDPE and by US$40/ton for LLDPE. Distributors in Malaysia reported that producers announced initial September prices with rollovers this week as they have been unable to make sales at the new producer price levels amid buyers believe that prices will drop after the holidays, Buyers have not been tempted back to the market by rumors that local supplies for September will be limited. Buyers in both China and Southeast Asia are electing to remain on the sidelines for now in anticipation of seeing further price decreases in September. Players are generally pessimistic about the demand outlook for next month, saying that they do not believe that the traditional high season for agricultural film in China or the usual post-Ramadan pick-up in demand in Southeast Asia is likely to make any real impact on the market in September.
Import LLDPE film prices for September have been announced with decreases of US$30-100/ton in China. Few September prices for HDPE film were reported with rollovers this week. Producers complained that their new offers are meeting with little interest from buyers even after their price reductions, with only a few deals reported towards the lower end of the overall offer range. Inside China, domestic producers conceded to decreases of CNY100-600/ton ($16-94/ton) towards the end of this week in the face of persistently poor buying interest.
In Southeast Asia, import PE prices dropped at the lower end of the range this week as Middle Eastern producers returned to the market with decreases on September prices. A Saudi Arabian producer reduced their September prices by US$20/ton for HDPE film and US$30/ton for LLDPE film while complaining that their new offers are not being met with much interest from buyers despite prices being competitive when compared with other import origins. In the region's local markets, players in Indonesia experienced sales slowdown this week despite a cut by domestic producers by US$20/ton for HDPE and by US$40/ton for LLDPE. Distributors in Malaysia reported that producers announced initial September prices with rollovers this week as they have been unable to make sales at the new producer price levels amid buyers believe that prices will drop after the holidays, Buyers have not been tempted back to the market by rumors that local supplies for September will be limited. Buyers in both China and Southeast Asia are electing to remain on the sidelines for now in anticipation of seeing further price decreases in September. Players are generally pessimistic about the demand outlook for next month, saying that they do not believe that the traditional high season for agricultural film in China or the usual post-Ramadan pick-up in demand in Southeast Asia is likely to make any real impact on the market in September.
LDPE, LLDPE prices
Low density polyethylene demand has come under pressure in Asia, as end-product converters are increasingly replacing the resin with cheaper alternatives, industry sources said Monday.
"With C6 [metallocene] LLDPE prices mid-way between C4 [butane] LLDPE and LDPE prices, buyers are switching to C6 LLDPE," a regional producer said. "Especially for multi-layer extrusion purposes," which includes packaging material such as bags used to contain bread.
Converters typically use a combination of C4 LLDPE and LDPE for the end- product, but now C6 LLDPE can be used as a substitute for LDPE in certain applications as it's price is below LDPE's.
Industry sources said the recent trend has lowered demand for general purpose grade LDPE by 10-20% over the last few months. They pointed out that other LDPE grades, such as heavy duty and lamination grades, are not affected by the swing to C6-based LLDPE.
"You can switch to C6 LLDPE in most general purpose applications," another producer said.
Meanwhile, a trader pointed out that "not many people are interested in buying LDPE, and if they really need cargoes, they'll buy in small quantities."
Platts on Monday assessed C4-based LLDPE at $1,325/mt CFR Far East Asia. C6-based LLDPE typically commands a $100-150/mt premium over its C4 variant, according to market sources.
In comparison, LDPE was assessed at $1,539/mt CFR Far East Asia on Monday.
"Increasingly, LDPE is seen almost like an additive," joked one source, who said that his factory adds only about 10% of LDPE resins in required applications, "or replace with C6 LLDPE."
"With C6 [metallocene] LLDPE prices mid-way between C4 [butane] LLDPE and LDPE prices, buyers are switching to C6 LLDPE," a regional producer said. "Especially for multi-layer extrusion purposes," which includes packaging material such as bags used to contain bread.
Converters typically use a combination of C4 LLDPE and LDPE for the end- product, but now C6 LLDPE can be used as a substitute for LDPE in certain applications as it's price is below LDPE's.
Industry sources said the recent trend has lowered demand for general purpose grade LDPE by 10-20% over the last few months. They pointed out that other LDPE grades, such as heavy duty and lamination grades, are not affected by the swing to C6-based LLDPE.
"You can switch to C6 LLDPE in most general purpose applications," another producer said.
Meanwhile, a trader pointed out that "not many people are interested in buying LDPE, and if they really need cargoes, they'll buy in small quantities."
Platts on Monday assessed C4-based LLDPE at $1,325/mt CFR Far East Asia. C6-based LLDPE typically commands a $100-150/mt premium over its C4 variant, according to market sources.
In comparison, LDPE was assessed at $1,539/mt CFR Far East Asia on Monday.
"Increasingly, LDPE is seen almost like an additive," joked one source, who said that his factory adds only about 10% of LDPE resins in required applications, "or replace with C6 LLDPE."
PET prices
Raw material pressures have sent North American prices for PET bottle resin and solid polystyrene higher since Aug. 1.
PET prices are up an average of 3 cents per pound, largely due to higher prices of paraxylene feedstock. That, in turn, has lifted prices for purified terephthalic acid feedstock, which has its U.S. prices tied to paraxylene on a formula basis.
“Paraxylene keeps going up,” one industry insider said. “The margins on it are huge right now. And supplies [of paraxylene] are relatively tight.”
The raw material push has sent prices higher even as North American PET demand largely was flat in the first half of 2011. Demand for the material in Mexico was up slightly, but lower U.S. demand -- caused mainly by continued lightweighting of PET bottles -- negated that growth, the insider said.
Consumer preferences continue to move toward thinner water bottles and away from thicker bottles for carbonated soft drinks, he added. This was evident in a conversation he recently had with a U.S.-based bottler.
PET prices are up an average of 3 cents per pound, largely due to higher prices of paraxylene feedstock. That, in turn, has lifted prices for purified terephthalic acid feedstock, which has its U.S. prices tied to paraxylene on a formula basis.
“Paraxylene keeps going up,” one industry insider said. “The margins on it are huge right now. And supplies [of paraxylene] are relatively tight.”
The raw material push has sent prices higher even as North American PET demand largely was flat in the first half of 2011. Demand for the material in Mexico was up slightly, but lower U.S. demand -- caused mainly by continued lightweighting of PET bottles -- negated that growth, the insider said.
Consumer preferences continue to move toward thinner water bottles and away from thicker bottles for carbonated soft drinks, he added. This was evident in a conversation he recently had with a U.S.-based bottler.
PP prices
Houston (Platts)--25Aug2011/549 pm EDT/2149 GMT
Polypropylene demand in the Mexican domestic market during July and August grew 14-15% over the months and May and June, said a source at resin producer Indelpro.
"Customers were preparing for the back to school purchases and producing more food packing, for example. In August, some customers are starting to buy resin to get ready for the end of the year festivities too," said a company source.
Indelpro's polypropylene offer prices were stable for the domestic and export market compared to last week.
"We are waiting to see what's going to happen with the propylene prices in the US, and next week we should have a clear view about where the polypropylene offers are going to be for September," added the source.
In the end of July, Mexican polypropylene producer Indelpro reported August prices with a 3 cents/lb increase for the domestic market, supported by higher nominations in the USGC for August.
After the hike, Indelpro was offering in August for the domestic market at 106 cents/lb DDL bagged for homo raffia and injection, 107 cents/lb DDL bagged for homo film and at 110 cents/lb DDL bagged for co-polymer impact.
For the export market, August Indelpro's offers to Central America, Caribbean and Andean countries jumped $50/mt over July and were pegged at $2,000/mt CFR for homo raffia and injection and at $2,100/mt CFR for co-polymer.
Polypropylene demand in the Mexican domestic market during July and August grew 14-15% over the months and May and June, said a source at resin producer Indelpro.
"Customers were preparing for the back to school purchases and producing more food packing, for example. In August, some customers are starting to buy resin to get ready for the end of the year festivities too," said a company source.
Indelpro's polypropylene offer prices were stable for the domestic and export market compared to last week.
"We are waiting to see what's going to happen with the propylene prices in the US, and next week we should have a clear view about where the polypropylene offers are going to be for September," added the source.
In the end of July, Mexican polypropylene producer Indelpro reported August prices with a 3 cents/lb increase for the domestic market, supported by higher nominations in the USGC for August.
After the hike, Indelpro was offering in August for the domestic market at 106 cents/lb DDL bagged for homo raffia and injection, 107 cents/lb DDL bagged for homo film and at 110 cents/lb DDL bagged for co-polymer impact.
For the export market, August Indelpro's offers to Central America, Caribbean and Andean countries jumped $50/mt over July and were pegged at $2,000/mt CFR for homo raffia and injection and at $2,100/mt CFR for co-polymer.
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