January 26, 2005More SteelSometimes you win on long-term contracts, sometimes you lose. California's Grey Davis lost big time. US steel producers, who've been enjoying a very good year, may be insulated from suddenly rising iron ore and coking coal prices. North American steelmakers have stronger relationships and longer-term contracts with their suppliers and are expected to be less affected. Still, the effect of higher raw materials could be felt by steel consumers world-wide. Steel prices were expected to remain near current high levels for the first half of the year, then taper off in the second. Well, maybe. But with profits strong, it may also be a chance to weed out some of the weaker producers, and a market-share opportunity for US steel producers. After all, "[i]n some ways, the price run-up is a delayed reaction to high steel prices." Posted by joshuasharf at January 26, 2005 10:57 AM | TrackBack |
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