metals monitor october 2010

Upload: greatamerican

Post on 09-Apr-2018

216 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 Metals Monitor October 2010

    1/13

    Metals Monitor October 2010

    In this Issue:

    Introduction 1

    Carbon Steel 3

    Aluminum 7

    Stainless Steel 8

    Copper 9

    Nickel 10

    Metal Reference Sheet 11

    Welcome to the October 2010 issue of the MetalsMonitorfrom Great American Group Advisory& Valuation Services. This publication will pro-vide you with market value trends in both ferrousand non-ferrous metals. The enclosed informa-tion is based on qualified metals industry publica-tions and key industry contacts.

    The commodity nature of steel scrap, aluminumingot, copper cathode, and nickel warrants thetimely reporting of market value changes. Thetiming of our mid-monthMetals Monitorwill cap-ture the month-end prices that act as the basis forpricing value-added metal mill products.

    TheMetals Monitorincludes a sampling coveringmost metals projects. GA internally tracks addi-tional specialty and tool steels, all raw materialsfor

    steel, specialty steel, and primary aluminum pro-duction and manufacturing, but we are mindful toadhere to your request for a simple referencedocument. Should you need any further informa-tion, please feel free to contact your GA BusinessDevelopment Officer or utilize our contact infor-mation shown in this and allMetals Monitorissues.

    GAs metals expertise is not confined to use onpure metals projects, but is also utilized in assuringthe accuracy and insight for all manufacturingprojects where metals are the primary or signifi-cant raw materials regardless of the sector of fin-ished products. This ensures that all projects and

    appraisals from GA represent the full value of allof our insights. You gain the full strength of ourmany assets in every assignment for which youengage GA.

    As we begin the fourth quarter, expectations fordemand improvement have been delayed to 2011.The effects of the recession linger, and real de-mand improvements are not expected, especiallysince the holiday period is typically a wind-downperiod.

    Introduction

    Continued high levels of employment and lowconsumer confidence will keep spending in calthough retailers remain hopeful about the hday season. The automotive sector has likelyits most robust time for 2010 within the first Since carbon flat-rolled producers were not scessful in gaining their announced price increin September, the hopes for additional per torevenues in 2010 are dashed.

    Even the energy sectors are showing signs ofvolumes for the balance of 2010. The oil andmarket for metals continues improvement weabove 2009, although the North American acrig count in September fell slightly from AuguSeptember 2010 was 64% better than Septem2009, but the active rig count was down a netrigs in North America. The U.S. rig count increased by 17 in September over August, but count in Canada fell by 40 rigs. Active rigs inU.S. totaled 1,655, and the total North Ameririg count was 2,002. As a comparison, the toNorth American active rig count in Septembe2009 was only 1,217. According to petroleumindustry consulting firm Baker Hughes and SBusiness Briefing, North American rig activitgenerally represents approximately 65% of thworlds total.

    Primary metallic values for aluminum, coppernickel, and zinc are all continuing to rise, withOctober month average to date up over Septeber. However, ferrous scrap markets have corected and begun to decline for the Octobermonth average to date compared to SeptembRaw materials pricing is varied, with slight dein iron ore and slight increases in alumina. Fealloys such as ferrosilicon (75% contained) hacontinued to increase and metallics such as mdenum remain up. The major individual prodpoints will be covered in our product specificcommentary and our reference sheets.

    GREAT AMERICAN GROUPADVISORY & VALUATIONSERVICES

  • 8/8/2019 Metals Monitor October 2010

    2/13

    | 2

    ABOUT GREAT AMERICAN GROUP

    Great American Group is a leading provider ofasset disposition solutions and valuation andappraisal services to a wide range of retail,wholesale and industrial clients, as well aslenders, capital providers, private equity investorsand professional services firms.

    Headquarters:

    21860 Burbank Blvd.Suite 300 SouthWoodland Hills, CA 91367800-45-GREATwww.greatamerican.com

    AtlantaBoston

    Chicago

    DallasLondon

    Los AngelesNew York

    San Francisco

    APPRAISAL & VALUATION TEAM

    Mike MarchlikNational Sales & Marketing [email protected]

    818-746-9306

    Ken BlooreChief Operating [email protected]

    818-884-3737

    Ryan MulcunrySenior Vice President -Northeast, Canada & [email protected]

    Bob MooreSenior Vice President, Metals and [email protected]: 864-297-1359 F: 864-751-1606

    Fred RaccostaSenior Vice President - NY [email protected]

    Michael PetruskiExecutive Vice President, General [email protected]: 704-944-3259 F: 704-746-9179

    David SeidenExecutive Vice President - [email protected]

    Greg TrilevskySenior AppraiserMetals and [email protected]

    Bill SonciniVice President - [email protected]

    Alex TereszcukSenior AppraiserMetals and [email protected]

    Drew JakubekVice President - Southwest

    [email protected]

    Dan TracySenior AppraiserMetals and Manufacturing

    [email protected]

    John LittleSenior AppraiserScrap and [email protected]

  • 8/8/2019 Metals Monitor October 2010

    3/13

    | 3

    CARBON STEEL

    Ferrous scrap prices in October have declined and seem tobe falling prematurely to the fourth quarter holidays. Auto-motive shred scrap prices are down $11 per gross ton (GT =2,240 pounds) in October to date from the Septembermonth average and may be seen in the graph below. TheChicago busheling price for consumers is down over $17 perGT from September and HMS (heavy melt steel) is downover $12 per GT from the September average. The scrapprice declines summarized above relate to published markets,and GA consistently uses the Chicago consumer market fortracking all scrap categories in order to be consistent withsteel mills and the monthly surcharge mechanism. Steel millsare using the changes in Chicago automotive shred pricingfor indexing monthly price adjustments to contract businessand spot business. However, while we are graphing the

    automotive shred at $355 per GT, we know of limited trad-ing directly to steel mill consumers at levels as low as $340 to$345 per GT.

    Other news in iron and scrap substitute raw materials includeNucors plans to build a DRI (direct reduced iron) plant inLouisiana instead of Brazil. Nucor is proceeding with itsconstruction plans for this $750 million new plant, whichreplaces its original plans for coke oven batteries and a blastfurnace for pig iron. The carbon footprint is cited as thereason for the change from coke ovens and a blast furnace.The DRI facility represents approximately one-third of thecarbon footprint and one-half of the capital for essentiallythe same tonnage output of 2.5 million tons.

    DRI is traditionally a cost penalty when in use in steel-making versus pig iron, but Nucor contends technologicaladvances obtained in its Tobago and Trinidad DRI facilitiesoffset much of the cost premium. Nucor CEO Dan Di-Micco cites a concern for the long-term cost of potentiallegislation taxing greenhouse carbon gases, and the DRI op-tion is a better option than coke ovens and a blast furnace.

    $0

    $50

    $100

    $150

    $200

    $250

    $300

    $350

    $400

    $450

    MONTHLY AVERAGE AUTO SHRED SCRAP PRICE PERGROSS TON

    AUGUST 2009 THROUGH OCTOBER 8, 2010

  • 8/8/2019 Metals Monitor October 2010

    4/13

    | 4

    CARBON STEEL

    Without implementations of the intended increases, the dieis cast for downward pressure. For the most part, prices arecurrently flat, but further declines are anticipated. When coilprices are calculated at transaction prices net of discountsand rebates, the results show a $10 per NT drop at mini-mum.

    The U.S. carbon steel mill utilization rate for September av-eraged 70.1%, and the 2010 overall mill utilization was ad-justed to a rate of 70.65% YTD. Utilization had remainedover 70% since the week of March 14, 2010, falling in earlyAugust below 70% for more than a week. Severstal NorthAmerica has stated it will maintain the idled status on the

    furnaces at the Sparrows Point, Maryland and WheelingPittsburgh plants, running only finishing processes and eventhose only at partial capacities.

    Decreases in utilization and production occurred in most allregions of North America, and although one week in Sep-tember saw utilization at over 72%, the month end averagefell 0.5% from the August level of 70.6%. October to date isfluctuating between 69% and 70%. As a comparison, worldsteel mill utilization continues to operateat or above 74%,and German steel assets are operating at above 80%.

    The flat-rolled mills intended increases of $30 to $40 per netton (NT = 2,000 pounds) for September did not happen,

    and in fact some price declines have occurred in the spotmarkets. Scrap and raw material prices began to decline, andcoupled with crippled demand, the attempts at raising pricesfell flat. Scrap prices are used as the index for monthly sur-charge adjustments by mills/producers. These declines infinished goods would normally automatically indicate pricedeclines unless mills were successful in gaining base priceincreases.

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    AVERAGE UTILIZATION OF US CARBON FLAT ROLLED

    MILLS BY MONTHJULY 2009 THROUGH OCTOBER 12, 2010

  • 8/8/2019 Metals Monitor October 2010

    5/13

    | 5

    CARBON STEEL

    The lack of recovery in the construction sector continues todepress the volume for carbon steel long products and willdepress pricing as scrap prices fall. Mini-mill long productsproducers have pushed through price increases on the backof increased scrap prices in September, but as scrap is nowfalling, those gains may be short lived in the balance of 2010.Products such as merchant and structural bars and shapes,structural tubing, and pipe and plate products all have exhib-ited flat volumes, and pricing has moved mostly in tandemwith scrap values in the form of changes in monthly sur-charges.

    Market sources are now predicting that hot-rolled band spotprices of around $500 per short ton will be prevalent withinweeks. According to Steel Business Briefing, one southern pur-chaser with a large flat rolled service center company stated,"Ultimately, I think that we are headed for $500 a tonsooner, rather than later." A midwestern stocking servicecenters representative indicated he does not see much prom-ise in the market through year-end, "other than rumors ofsome big players wanting to make large purchases in thehope that the New Year will start off good."

    High-grade zinc, of which over 47% is used for galvanizingcarbon steel, continues to increase in value, with the currentLME (London Metal Exchange) cash price for high grade at$2,232 per metric tonne (MT = 2,204.62 pounds) or

    $1.01242 per pound plus a premium of $0.0475 per pound.The current value represents pricing another $0.05 perpound over September and total increases in zinc pricing ofnearly $0.30 per pound since July. High-grade zinc valueswere at or over $1.00 per pound from November 2009 untilMay 2010 and were falling as we entered the beginning ofthe summer.

    Demand for plate, bar, and structural shapes relies strictly onthe performance and relative strength in U.S. agricultural andearth-moving equipment sales, which are largely dependenton exports.

    Steel Business Briefing reported Gerdau Ameristeel CEOMario Longhi saying that the U.S. congressional elections inNovember could provide much needed clarity to uncertain-ties surrounding the American economy and regulatory poli-cies that will significantly impact the steel industry goingforward. Mr. Longhi does not see a recovery in essentialmarket sectors for the longs products maker, such as non-residential construction, for another two years, or until 2012.Longhi did say that he believes U.S. steelmakers are seeing a"validation of the bottom" of the market and the direction

    from here is up.

    Nucor Steel, the market leader in producing long products inthe U.S., will decrease its price for merchant bar effectiveimmediately, following a $30 per long ton decrease in the keybenchmark scrap price. According to a letter Nucor sent tocustomers, effective Wednesday, October 13, the companydecreased its raw materials surcharge by $30 per short tonand is also leaving the base price unchanged, for a $30 pershort ton net decrease. It was also reported that Steel Dy-namics Inc.'s Roanoke bar mill will follow the move and it islikely that North Americas second largest mini-mill pro-ducer, Gerdau Ameristeel, will do the same. Nucor alsoannounced it will keep its net transaction price for wide

    flange beams and rebar unchanged, despite the dip in theshredded scrap price used to set surcharges.

    Market conditions for MBQ (merchant bar quality) and SBQ(special bar quality) bars for the fourth quarter are startingoff slow. The MBQ market is still impacted by slow de-mand, as inventory levels at service centers are adequate forcurrent requirements. However, as stated previously, priceincreases announced by the major producers of MBQ bars,as well as bar and structural shapes, have been implemented,but will be mostly offset by reduced scrap surcharges. Priceincreases for SBQ products appear to have taken hold. SBQproducts have seen some tightening in production supply, as

    the major suppliers of SBQ did not increase capacity as fastas the increase in demand. This has meant longer lead timesfrom major suppliers, stretching out to January and February2011 for most all SBQ bars and even March 2011 from someproducers. Imports of SBQ have much longer lead timesand have experienced price increases commensurate withNorth American mills.

  • 8/8/2019 Metals Monitor October 2010

    6/13

    | 6

    CARBON STEEL

    There have been some improvements in the market demandfor SBQ products within the capital goods sector from heavytruck and heavy equipment manufacturers, but most particu-larly from the oil, gas, and energy-related sectors includingwind tower construction. The non-residential construction,housing, and appliance industries still lag. One Midwesternservice center executive reports that heavy equipment manu-facturers like Caterpillar and John Deere are also puttingpressure on SBQ supply, stretching lead times out to 28 to32 weeks in some cases.

    Recent capital improvements and expansions announcedinclude U.S. engineered bar maker Gerdau Macsteels plansto spend $67 million at its Monroe, Michigan facility, adding225,000 short tons of capacity by 2013. This expansion in-

    cludes a new caster and upgrades to the mills melt shop andgeneral infrastructure. Clearly this and other possible capitalinvestments offer no immediate improvement in the avail-ability shortfalls of today.

    As reported last month, cold finished bar imports have in-creased approximately 14% 2010 year-to-date over 2009. Aswith the overall SBQ markets, there have been improve-ments in the market demand within the capital goods sectorfor SBQ products, particularly with heavy truck and heavyequipment manufacturers, and particularly the energy indus-tries.

    ERW mechanical and structural tubes continue to mottle

    through the effects of the construction recession. ERWmechanical and structural tubing is currently used for agricul-tural and earth-moving equipment frames and infrastructureto the energy markets. Other than the energy market, thedemand in equipment is still predominantly driven by ex-ports.

    OCTG demand and pricing are stable with some increasingprices resulting from the ITC (International Trade Commis-sion) rulings on dumping of Chinese pipe in the U.S. marketsresulting in implementation of taffies and possibly counter-vailing duties. As reported in the beginning of this issue,active rig counts in the U.S. continued to show growth of 17rigs, while the Canadian rig count declined by 40 for a netdecline in North America of 23 rigs. Oil country tubulars inNorth America should continue to realize some stability asCanada is now filing complaints regarding dumping of Chi-nese pipe. In the U.S. market, retroactive penalties are inprocess of implementation.

    Global oil and gas drilling activity, as measured by active rigs,is regarded as a useful barometer of the OCTG market. TheU.S. has proved the steadiest performer coming out of therecession, so far achieving 15 consecutive month-on-monthincreases in drill rig numbers, as indicated by data from in-dustry consultant source Baker Hughes. Crude oil priceshave hovered around $80 per barrel since last year, which hasprovided a degree of stability for those investing in explora-tion and production. Natural gas prices have steadied atapproximately $4 per MMBtu (one million British thermalunit) over the past six months and this too is providing sta-bility in gas exploration and production.

    As reported last month, line pipe is not as robust as drillingrigs and does not translate to production rigs or wells. How-

    ever, a shortage exists of cold drawn seamless mechanicalpressure tubes in the smaller sizes at and below 2. Produc-ers such as Sharon Tube, subsidiary of Wheatland Tube, partof the John Maneely Companies, and Lakeside Steel in Wel-land, Ontario are the major producers in North America ofthis size range for cold drawn seamless. Few other colddrawers of seamless pipes are in this size range or participatein the line pipe market.

    Long-term supply and demand effects of the advent of thenew Boomerang OCTG mill and Ontarios Lakeside Steelsrecent groundbreaking of a new $40 million mill in Thomas-ville, Alabama will not be realized for some time. Commis-sioning of the two new mills is currently scheduled for late

    2011.

    Further tubing and pipe news include the name change inprocess for Harrow, Ontario-based John Maneely Com-panys operations, which include Atlas Tube and WheatlandTube along with Wheatland subsidiary Sharon Tube. Thenew company name is JMC Steel Group. Atlas and Wheat-land will continue to operate and sell under their individualnames.

  • 8/8/2019 Metals Monitor October 2010

    7/13

    | 7

    ALUMINUM

    Aluminum pricing for prime metal on the LME continues torise with the September month average at $2,162 per MT or$0.9807 per pound, up $0.02 per pound over August. Octo-ber aluminum values on the LME are now at $2,343 per MTor $1.0628 per pound. The Midwest premium, used to ac-count for freight and handling, and equalized throughout theU.S. and Canada, has remained firm but flat to date into Oc-tober and is stable at $0.064 per pound. The LME value ofP-1020 primary is now $1.0628 per pound and, added to theMidwest premium, the cost to casting and rolling mills isnow nearly $1.13 per pound. The official LME warehousestocks of P-1020 primary aluminum declined 63,000 MTfrom September month end to total 4,331,600 MT as of Oc-tober 11. This represents the eighth consecutive month ofdecline.

    As recently reported in Platts Metals Week, aluminum demandin the U.S. and Canada (shipments by domestic producersplus imports) totaled an estimated 11.720 billion pounds

    during the first seven months of 2010, up 18% above a yearago, according to preliminary estimates by the AluminumAssociation. The association went on to report demand forsemi-fabricated (mill) products was up 13% to a total of8.197 billion pounds and apparent consumption (demandless exports) in domestic markets totaled an estimated 9.922billion pounds, 18.1% above that of 2009.

    Klaus Kleinfeld, Alcoa chairman and CEO, speaking duringa quarterly earnings conference call on October 7, said Alcoahad revised its estimate of 2010 global aluminum demandupward to show 13% growth over 2009, up from the com-panys second-quarter projection of 12%. Kleinfeld pointed

    to declining aluminum inventory levels during the quarter assign of increased consumption, driving firmer aluminumpremiums.

    $0.00

    $0.20

    $0.40

    $0.60

    $0.80

    $1.00

    $1.20

    MONTHLY AVERAGE P1020 PRIMARY ALUMINUM SHEET

    INGOT PRICE PER POUNDJULY 2009 THROUGH OCTOBER 11, 2010

  • 8/8/2019 Metals Monitor October 2010

    8/13

    | 8

    ALUMINUM

    It appears United Steelworkers (USW) and Century Alumi-num may be close to resolving the current negotiations cov-ering Centurys 244,000 metric ton smelting plant in Hawes-ville, Kentucky. USW international representative BobbyPierson released a statement saying the two parties madegreat progress in negotiations that wrapped up last week inWashington. At least one more bargaining session will be

    needed, Pierson said. Other union news and progress in thealuminum industry is that USW membership has ratified anew contract for the 350 employees at Norandas Gramercyrefinery. The old contract expired on September 30 and thenew five-year agreement assures no disruption of the 1.2million MT alumina refining operation.

    Aluminum extrusion makers are paying more for raw materi-als as the billet up-charge and extra over Midwest aluminumingot pricing continues to increase and is approaching $0.12per pound in some areas. The billet up-charge, which hadbeen at the $0.095 per pound for a long period, has nowbeen at or above ten cents per pound for several months. Inaddition, the alloy premium from secondary aluminum pro-

    ducers has moved upward, thereby affecting materials cost toaluminum foundries and die casters.

    STAINLESS STEEL

    Stainless steel mill prices are largely dependent on monthly

    adjusted surcharges, which are based on nickel, chrome, mo-lybdenum, and other metallic values from two months prior.The two-month lag is to account for normal lead times ofstainless steel products. In theory, the stainless steel beingdelivered to customers in October was made from nickel andother metallics purchased by the mill in August. As a result,we know the full stainless prices for November on October1.

    The price for stainless steel sheet coils in T304/T304L and

    T316/316L are increasing for November mill shipments by$0.0701 and $0.0835 per pound, respectively. Other metal-lics and items affecting stainless steel surcharges include, inorder of importance, chrome, molybdenum (Moly), iron(referring to ferrous scrap), titanium, manganese, copper,and energy (natural gas prices). Surcharges typically accountfor well over 55% of the stainless steel pricing in the mostcommon Austenitic grades.

  • 8/8/2019 Metals Monitor October 2010

    9/13

    | 9

    COPPER

    LME values for high-grade copper and copper cathode alsocontinue to increase with the September month average up$0.19 per pound over August and the October value throughthe 11th up an additional $0.186 per pound over September.The LME price for high-grade copper through October 11 is

    $3.676 per pound. Coupled with the market premium of$0.054 per pound, high-grade copper and cathode cost isnow $3.73 per pound. LME warehouse stocks of coppercontinued to drop, falling by another 15,000 MT Septemberto October to date. Copper stocks in LME warehouses havenow declined more than 154,000 MT since March 2010.

    On a humorous note, it was just last week that Daniel Breb-ner, Deutsche Banks head of metals research, predicted cop-per average cash prices on the LME will continue to rise inthe coming years, hitting $3.34 per pound in 2010 comparedwith $2.35 per pound in 2009. However, the current Octo-ber price is now $3.67 per pound, there by illustrating onemore example of the difficulty in forecasting the metals mar-

    kets. At the same conference of the LME, Citigroup GlobalMarkets said it expects copper prices to be in the mid $3.63per pound range over the coming few months and exceed$4.08 per pound next year. Clearly, the current jump to over$3.67 per pound was a surprise to most authorities.

    $0.00

    $0.50

    $1.00

    $1.50

    $2.00

    $2.50

    $3.00

    $3.50

    $4.00

    COPPER LME MONTHLY AVERAGES PRICE PER POUND

    JULY 2009 THROUGH OCTOBER 11, 2010

  • 8/8/2019 Metals Monitor October 2010

    10/13

    | 10

    NICKEL

    Nickel values continued to increase, with the Septembermonth average LME value settling at $10.27 per pound, upnearly $0.56 per pound over the August month average.October to date finds the nickel LME value at $10.993 perpound. Nickel is now up to the $11 per pound levels ofApril of this year as the recent rebounds of increases havecome in large portions.

    Nickel stocks declined another 8,000 MT October to datefrom the September month end levels bringing the LMWwarehouse stocks to 611,725 MT. Speaking at the LMEsrecent seminar in London, Joshua Crumb, senior metalstrategist at Goldman Sachs, said its forecast expects thesupply of nickel to grow by 11% in 2011, citing the restart ofVale Incos operations in Canada following a lengthy strike,which adds around 60,000 MT of new production and allevi-ates the shortage of premium refined products in the market.

    Mr. Crumb also said some 87,000 MT in new projects and

    ramp-ups should also come online. Particularly Canadaalone will meet, in our view, an incremental demand fromChina. Next year, we see a very low risk of deficit, Crumbsaid. The bank forecasts a 5% demand growth, mainly fromChina.

    Nickel is one of the driving forces in austenitic grades ofstainless steel, such as chrome is the driving force for mart-ensitic grades of stainless steels. Stainless surcharges arebased on elemental metallic content values of two monthsprior. October delivered prices for 300 series stainless steelsare up fairly significantly due to the August metals values,and now November prices will jump resulting from the Sep-tember nickel values. This certainly helps stainless distribut-ing service centers with their stock values and these distribu-tors are where the markets inventories are held. The nickelincreases will impact much of the alloy and specialty steelvalues including some tool steels. Certainly nickel alloys willsee substantial increases. High nickel alloys surcharges arebased on nickel values four months prior in concert withtheir longer than stainless steel lead times.

    $0.00

    $2.00

    $4.00

    $6.00

    $8.00

    $10.00

    $12.00

    $14.00

    NICKEL LME MONTHLY AVERAGES PRICE PER POUND

    JULY 2009 THROUGH OCTOBER 11, 2010

  • 8/8/2019 Metals Monitor October 2010

    11/13

    | 11

    METALS REFERENCE SHEET

    YEAR AGO SEPTEMBER AS OF OCTOBER 11, 2010AUTO SHRED $267/GT $366/GT $345-355/GT ($312.50/NT)

    HMS (HEAVY MELT STEEL) $245/GT $347/GT $335/GT ($299.10/NT)

    BUSHLING $317/GT $427/GT $410/GT ($366.08/NT)

    CARBON STEEL SCRAP VALUES CHICAGO MARKET

    CARBON STEEL VALUES IN MAJOR COMMODITY FORMS

    CARBON FLAT ROLLED SHEET COIL BASE PRICE

    AUGUST 2010 SEPTEMBER 2010AS OF OCTOBER

    2010

    HOT BANDS $580-620/NT $580-590/NT $540-580/NT

    COLD ROLLED $680-700/NT $680-710/NT $650-680/NT

    HOT DIPPED COATED GALVANIZED* $680-720/NT $690-720/NT $670-700/NT

    CARBON STEEL PLATES

    *0.040 x 48/60 wide coil with G90 coating=$790-$820/NT

    BASE PRICE

    PLATE COILS AND STRIP MILL COILS $590-640

    DISCRETE PLATES CARBON STEEL $720-750 depending on producer and thickness limitsALLOYS PLATES $1,185/NT and subject to grade extras up to $600/NT

    HOT ROLLED MERCHANT BAR (MBQ) SHAPES (NET OF DISCOUNTS AND REBATES)

    OCTOBER DELIVERY

    1/4 X 4 FLATS $750-790/NT

    2 X 2 X 1/4 ANGLES $730-780/NT

    HR ROUND M1020/1 DIAMETER M1020/A 36 $754-814/NT

    REBAR, GRADE 60: #3 TO #5 SIZES $595 and $568/NT, respectively

    REBAR COILS, GRADE 60: #3 TO #5 SIZES $605 and $583/NT, respectively

  • 8/8/2019 Metals Monitor October 2010

    12/13

    | 12

    METALS REFERENCE SHEET

    SBQ BARS (INCLUDING SURCHARGES, NET OF REBATES)

    PIPES AND TUBULARS (NET OF REBATES)

    OCTOBER DELIVERY

    HOT ROLLED, C1018/1020 1-2 DIAMETER $41.45 to $42.45/CWT ($829 to $849/NT)

    HOT ROLLED 4140 (AS ROLLED) 4 DIAMETER $62.08 to $62.58/CWT ($1,241.60 to $1,251.60/NT)

    HOT ROLLED 4140 Q&T 4 DIAMETER $75.58 to $76.08/CWT ($1,511.60 to $1,521.60/NT)

    COLD FINISHED C1018 1 DIAMETER $57.46/CWT ($1,149.20/NT)

    COLD FINISHED C1018 2 DIAMETER $56.46/CWT ($1,129.20/NT)

    SEPTEMBER DELIVERY

    A500 GR B-SQUARE AND RECTANGULARSTRUCTURAL TUBING (HSS) 3-12 DIAMETER

    $780-840/NT

    A53 GR B 3/4 IPS TO 8 IPS $910-1,040/NT

    OCTG AND LINE PIPE SAMPLING

    SEPTEMBER DELIVERY

    J55 ERW $1,010-1,140/NT

    N/L80 (ALLOY) $1,535-1,680/NT

    P110 SEAMLESS ALLOY $1,460-1,840/NT

    LINE PIPE ERW $940-1,040/NT

    LINE PIPE SEAMLESS $1,310-1,430/NT

  • 8/8/2019 Metals Monitor October 2010

    13/13

    | 13

    METALS REFERENCE SHEET

    JULY 2010 AUGUST 2010 SEPTEMBER 2010

    ALUMINUM NA(HIGH GRADE P1020)

    $0.9019/LB $0.9608/LB $0.9807/LB

    MWTP (MIDWEST PREMIUM) $0.065/LB $0.065/LB $0.0635/LB

    OCTOBER MTD

    $1.0628/LB

    $0.064/LB

    PRIMARY MAJOR NON-FERROUS METALS

    ALUMINUM EXTRUSION ALLOY 6061/6063

    (Billet premium is added to LME + Midwest Premium for extrusion billet)

    ALUMINUM

    NICKEL & COPPER JULY 2010 AUGUST 2010 SEPTEMBER 2010

    NICKEL, LME VALUES $8.8543/LB $9.7129/LB $10.270/LB

    COPPER HIGH GRADE A,LME VALUES $2.9481/LB $3.3657/LB $3.491/LB

    AS OF OCTOBER

    11, 2010

    $10.993/LB

    $3.676/LB

    Resulting:

    Direct Chill Cast Sheet Values: 3003-H14, 0.040/.063 x 48 x coil = $1.5668/LB5052 H32 = $1.5968/LB

    Continuous Cast: Building Products Grade 3105 = $1.3868/LBGrade 3003-H14 = $1.4138/LB

    JULY 2010 AUGUST 2010 SEPTEMBER 2010 OCTOBER MTD

    BILLET PREMIUM $0.099/LB $0.1025/LB $0.1045/LB $0.1085/LB

    Standard 6061 T651 solid extrusions - 2 x 2 x 1/4 x 24ft = $1.6353/LB

    STAINLESS STEEL FLAT ROLLED SHEET COIL VALUESProduct Prices (Using current average distributor discount)

    0.044 X 48/60 WIDE X COIL OCTOBER DELIVERY NOVEMBER DELIVERY

    T304 $1.6343/LB $1.7043/LB

    T316/316L $2.2546/LB $2.3378/LB

    *The above changes in product prices are driven by changes in monthly elemental metallic surcharges. These are mostheavily impacted by changes in nickel values but result from the combined impact of nickel, chrome, molybdenum, titanium,ferrous scraps and energy (natural gas). Surcharges are established from the monthly averages of the elements two months prior to the affected month.

    AUGUST 2010 SEPTEMBER 2010

    T304/304L $0.9632/LB $0.9391/LB

    T316/316L $1.5794/LB $1.3769/LB

    NOVEMBER 2010

    $1.0860/LB

    $1.5601/LB

    OCTOBER 2010

    $1.0159/LB

    $1.4766/LB

    SURCHARGES (FROM NORTH AMERICAN STAINLESS)