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Darling: Steel Costs Drive Fastener Prices
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2012-06-21
Fastener prices are up because steel prices are up over the past decade, Bruce Darling told the Southwestern Fastener Association.
• At the end of 2003, the cost of steel in Taiwan was US$364 per ton and China was US$375 per ton. For the second quarter of 2012 the prices are US$825 in Taiwan and US$709 in China. Both prices are down from the end of 2011. Fluctuation of the U.S. dollar drove up steel prices in 2010 and 2011 and then lower this year.
• First quarter 2012 steel prices were sliding due to low demand. Darling, vice president of materials management for Porteous Fastener Company, noted that this is the price level at which distributors are now receiving shipments from fastener importers.
• Q2 2012 steel prices are steady and "reflect the U.S. dollar appreciation against the Taiwan dollar," Darling explained. "This is the price at which importers are placing current purchase orders."
• During the final quarter of 2011, U.S. steelmakers found demand was increasing due to car, farm gear and oil drilling equipment sales. "There has been new investment in steel production capacity in the U.S."
• Taiwan: Steel Prices to Rise in Q3 – Taiwan steel prices are expected to remain steady this quarter and begin to rise in Q3.
• China: Steel Prices to Be Stable – The expectation is that steel prices in China "will move little over the net six to nine months," Darling predicted.
European volume remains slow and the U.S. demand "while up, is not booming. Steel is in oversupply and what little increases that might occur will be partially absorbed by wire suppliers and the factories themselves."
• India's steel prices "are not always stable and small things like labeling, pallets, payment terms and box quality seem to become issues," he added.
• Thailand: Steel Prices Steady – Darling termed the Thailand supply as "fairly steady." One supplier to Porteous told Darling that they "see little pressure for steel price increases. Supply is sufficient and no shortages are expected."
• At the end of 2003, the cost of steel in Taiwan was US$364 per ton and China was US$375 per ton. For the second quarter of 2012 the prices are US$825 in Taiwan and US$709 in China. Both prices are down from the end of 2011. Fluctuation of the U.S. dollar drove up steel prices in 2010 and 2011 and then lower this year.
• First quarter 2012 steel prices were sliding due to low demand. Darling, vice president of materials management for Porteous Fastener Company, noted that this is the price level at which distributors are now receiving shipments from fastener importers.
• Q2 2012 steel prices are steady and "reflect the U.S. dollar appreciation against the Taiwan dollar," Darling explained. "This is the price at which importers are placing current purchase orders."
• During the final quarter of 2011, U.S. steelmakers found demand was increasing due to car, farm gear and oil drilling equipment sales. "There has been new investment in steel production capacity in the U.S."
• Taiwan: Steel Prices to Rise in Q3 – Taiwan steel prices are expected to remain steady this quarter and begin to rise in Q3.
• China: Steel Prices to Be Stable – The expectation is that steel prices in China "will move little over the net six to nine months," Darling predicted.
European volume remains slow and the U.S. demand "while up, is not booming. Steel is in oversupply and what little increases that might occur will be partially absorbed by wire suppliers and the factories themselves."
• India's steel prices "are not always stable and small things like labeling, pallets, payment terms and box quality seem to become issues," he added.
• Thailand: Steel Prices Steady – Darling termed the Thailand supply as "fairly steady." One supplier to Porteous told Darling that they "see little pressure for steel price increases. Supply is sufficient and no shortages are expected."
