Welcome to SES Metals Ltd.
01.02.12 - A further addition to our growing account management team
We are pleased to welcome Julie Smith to the sales team as from today. Julie may be new to the metal industry but she brings with her over 9 years of sales and customer care experience.
31.01.12 letter from Thyssen
ThyssenKrupp confirms planned combination of Inoxum with Outokumpu;
Agreement reached with employee representatives
ThyssenKrupp AG confirms that an agreement in principle has been reached about the combination of Outokumpu and Inoxum, ThyssenKrupp's stainless steel business. The Management Board of ThyssenKrupp AG has already generally approved the transaction. In addition to that, an agreement was reached between the negotiating partners and the employee representatives this morning. The agreement includes rules for site and employment protection. The melt shop in Krefeld will be gradually shut down until the end of 2013. At least until this point in time the strip casting equipment will continue to operate. The melt shop in Bochum will be preserved until the end of 2016. The agreement also generally excludes compulsory redundancies until the end of 2015. All German production sites of Inoxum will be preserved without restrictions at least until 2015.
The results of the agreement with the employee representatives are subject to confirmation by the Management Board of ThyssenKrupp AG. The entire transaction requires the approval by the Supervisory Board of ThyssenKrupp AG and the Board of Directors of Outokumpu. The Supervisory Board of ThyssenKrupp AG will have an extraordinary meeting this afternoon.
The transaction agreement values Inoxum at an enterprise value of approx. EUR 2.7 bn. Under the agreement, ThyssenKrupp would obtain a minority stake of 29.9 % in the new company for its transfer of Inoxum. In addition, the consideration would include a significant cash payment from Outokumpu to repay ThyssenKrupp's financial receivables towards Inoxum as well the assumption of third-party financial liabilities and pension liabilities of Inoxum by Outokumpu.
Other than the board approval, the planned combination will be subject to a number of conditions, including regulatory approval.
ThyssenKrupp is a diversified industrial group. It has 180,000 employees in over 80 countries developing ideas and innovations into solutions for sustainable progress. In fiscal year 2010/2011 ThyssenKrupp generated sales of €49 billion.
For us innovations and technical progress are key factors in managing global growth and using finite resources in a sustainable way. With our engineering expertise in the areas of "Material", "Mechanical" and "Plant", we enable our customers to gain an edge in the global market and manufacture innovative products in a cost and resource efficient way.
Contact:
ThyssenKrupp AG
Alexander Wilke
Corporate Communications
Phone: +49 (201) 844-536009
Fax: +49 (201) 844-536041
Internet: www.thyssenkrupp.com
18.01.12 - Letter from Tata Steel
Re: price increase
Dear Customer,
I am writing to inform you that Tata Steel Europe is increasing its UK prices by
up to 12% for HR, CR and HDG products. This increase will apply to any new
business booked with immediate effect.
Raw material costs remain very high and consequently the current steel prices
are not sustainable.
Please let us know if our Sales team can be of assistance in supporting you
with the onward communication of this change to your customers.
We look forward to working with you for a successful 2012.
Yours sincerely,
Freek Schut
Director Sales & Marketing Industry Strip
17.01.12 Stainless on the Rise
MEPS forecasts that its benchmark, type 304, cold rolled Stainless Steel World Price will increase by $US850 per tonne over the next six months. The gain is expected to be driven by a combination of rising input costs and inventory building in the supply chains around the world.
Customer stock levels are low in all regions as buyers have been reluctant to purchase stainless steel products in the current economic climate. This pushed the world average figure for cold rolled type 304 to a 21 month low in December 2011.
However, over the past few weeks, nickel prices have escalated by 10 percent. Chromium prices are expected to follow a similar pattern. Scrap costs are increasing. These factors are predicted to lead to stock replenishment by both distributors and end users as they attempt to buy ahead of higher stainless steel prices resulting from rising mill input costs.
MEPS predicts a 25 percent rise in the benchmark stainless steel product price over the next six months in all regions of the world. Higher order volumes on the steelmakers and improving market conditions for the raw material suppliers is likely to boost stainless steel selling figures in the coming months.
MEPS contends that the price increases may be short lived due to the fragile nature of most markets. Stronger mill order books could easily result in oversupply of both input materials and the finished products. However, the anticipated reduction in stainless steel selling values during the second half of 2012 is not likely to be as steep as witnessed last year.
2012 Looking Ahead & Wishing All Our Customers A Prosperous New Year!
January will see some stability return to the stainless steel market, after nine months of falling prices. On 28 November, Outokumpu announced their intention to increase base prices by 5% and all other mills followed suit. These prices increases are urgently needed by the mills, as they have been losing money throughout the majority of 2011.
The largest single factor in the continual fall of prices has been the instability of nickel prices. Throughout December, nickel has held a level and increased slightly. If this price holds throughout January, expect prices to rise in February. Generally, the market is running with very little stock at present as people buy exactly what they need. If there is any recovery in price, stockists will look to build some inventory and prices could rise further throughout the first quarter.
Mild Steel
As in previous years, poor demand in December has seen competitive pressure force down prices. Generally people are keen to run down stock and to generate cash in Q4 and prices traditionally drop. As people back away from ordering new material, there is generally very little stock around in January and mills are able to increase their prices.
Whilst this situation is likely to repeat in 2012, it may take a little time for momentum to build. I would expect prices to stabilise after the first couple of weeks in January with some increases in price starting to happen from February onwards. The instability of price has reduced imports ordered on long lead time and European mills have significantly cut back production to prevent over supply.
Even in the face of weak demand, this can only cause prices to rise.
Aluminium
Mills are offering some material from stock, where they were quoting six month lead time this time last year
2011 Annual Roundup
As we approach the end of a year in which the industry as a whole has struggled to predict prices I thought that you might like an overview of price movements by sector.
Mild Steel
The early part of 2011 saw rapid price rises in prices based on tight supply. In Q1 prices jumped by 20%. In the rising market demand became buoyant as people bought early to secure cheaper material. One product severely affected was zintec which became extremely scarce. As supply conditions stabilised in Q2, prices slipped slightly and fell back 4% in Q2. Summer shutdowns, as ever, weakened prices as people used their stockpile of cheap steel bought early in the year. Mill orders also dropped as people looked to reduce stock levels in a falling market. Poor demand has continued in Q4 with the majority of users and stockholders running minimal stocks. Mills have responded to this with massive cut backs in production. Most European mills have moth balled blast furnaces and rolling mills to cut costs and restrict supply. In late November, Tata Steel announced their intention to suspend production at Llanwern, South Wales indefinitely. This mill has annual production capacity of 3m tonnes. These low production levels will continue into 2012. However, restricted supply combined with falling prices will limit imports and cause some shortages of material. Later in Q1/ early Q2 prices will begin to rise again as mills look to improve profitability.
Stainless Steel
Stainless prices also saw with rapid price increases in Q1. This was fuelled by both increases in alloy surcharge and base price. Compared to previous years these price gains were short lived, with the fall in prices beginning in April. Throughout the year, as the general weakness of the economy impacted on financial markets, nickel prices fell month on month causing large falls in alloy surcharges. These reductions in prices have caused mills and stockholders to face huge huge stock losses. Many have resorted to panic selling to drive down inventory. Despite prices rising by 12% in Q1, market prices in December are 15% lower than they were in January. Again mills are looking to address this by cutting production and increasing prices. However until the economic situation become clearer and financial markets stabilise, weak nickel prices will continue to keep both stainless and scrap prices low.
Aluminium
During the early part of 2011, capacity in European mills was extremely tight, with some even declining to quote 1050 sheet and circles in favour of more profitable products. Also, cheap imports from the Far East and South America became extremely attractive as people looked to secure supply. From Q3 onwards, as commodity prices of aluminium began to fall, European mill orders also dried up. Lead time and prices then began to fall with the market, leaving the market with high stocks of imports that were no longer attractively priced. This has led to people selling cheaply to reduce stocks. With the continued uncertainty of the financial markets, any price advantage from the Far East is outweighed by the risk of aluminium prices falling further. This window of opportunity appears to have closed.
Despite this industry turmoil, we at SES have invested in the development and growth of our sales team. We have also invested in new, and more fuel efficient, wagons to ensure that we can continue to provide you with an outstanding delivery service.
We have overhauled our stock management systems, allowing us to make more effective purchasing decisions and to provide you with an unrivalled product range at exceptional prices. Customers have found that our combination of excellent service, wide product range and competitive prices, has reduced their overall purchasing costs.
We would like to thank you for business during 2011 and look forward to working with you again in 2012.
Cameron Elliott
Managing Director
01.11.11 - Monthly Price movement guide
- 4%
|
|
Stainless Sheet |
|
-2%
|
|
Stainless Bar and Tube
Continuing weakness of nickel is driving down prices.Some stock shortages as people keep stock levels to minimum due to falling price |
|
-2%
|
|
Aluminium Sheet and Tread
Market remains over stocked with low priced imported material. Mills now offering short lead times and some stock material at lower prices.
Aluminium price on LME has stabilised. Market is now over stocked as stockists over ordered when faced with long mill lead times. |
|
-3%
|
|
Aluminium Circles
Some material has been imported from China at low prices.
However traded aluminium price in Shanghai is now higher than London and window of opportunity seems to have closed. Price in Europe has fallen and lead times down to 4-5 weeks |
+2%
|
|
Steel Sheet
Decline of prices over summer months now appears to be over with price having stabilised in September.
There have been slight increases on certain products (HR + zintecup £10/t). Mills are indicating there will be further increases backed by massive cuts in production |
 |
|
Mild steel flat and angle
Demand remains poor in construction sector and scrap price is falling.
Prices will remain weak |
|
|
|
Mild steel box
Period of relative price stability.
|
10.10.11- New member of the sales team
Today, Danny Newton joined the sales team.
Danny has previously worked for two mild steel stockholder and brings with him a wealth of experience.
07.10.11- Monthly Price movement guide
|
-3%
|
|
Stainless Sheet
Nickel price continues to fall causing surcharges to drop. 304 surcharge down £66/tonne. Overall prices fallen by 16% since April.
November price likely to reduce again
|
|
|
|
Stainless Bar and Tube
Mills have attempted to increase prices due to poor financial results. However falling surcharges keeping prices steady
|
|
-2%
|
|
Aluminium Sheet and Tread
Aluminium prices has fallen along with the stock market. Market over stocked with cheap imported Far Eastern material. Panic selling to reduce stocks
|
|
-3%
|
|
Aluminium Circles
Mill lead times shortest for two years. New material available at lower price but still some high priced stock material. Outlook uncertain and will reflect situation in financial markets
|
|
-2%
|
|
Steel Sheet
Poor demand continues to keep prices at a low level. Mill prices not really changing but stockholders dropping prices to gain market share and increase tonnage.
Market reaching bottom as stock dries up. Some shortages starting to appear (esp Zintec)
|
|
|
|
Mild steel flat and angle
Initial attempts to increase prices in August have been largely unsuccessful. Early gains in price have not stuck due to dperessed demand
|
|
|
|
Mild steel box
Period of relative price stability.
|
11.09.11 - Monthly Price movement guide
|
-2%
|
|
Stainless Sheet
Nickel price fallen by 6% in August. This will cause price to fall by 2.5% in Sept. Unless nickel recovers substantially similar reduction Oct. Massive blow to mills. Outokumpu lost €169m in Q2 2011. |
|
-1%
|
|
Stainless Bar and Tube
Falling surcharge is causing prices to dip, but long products are generally not as volatile as sheet. Some slight reduction
|
|
-2%
|
|
Aluminium Sheet and Tread
LME price fell back in line with nickel prices but have recovered slightly as weekprogressed. Market remains over stocked with downward pressure on prices
|
|
-3%
|
|
Aluminium Circles
LME is now slowly recovering but financial markets remain extremely uncertain and price volatility looks set to continue.
|
|
-2%
|
|
Steel Sheet
Stockholder prices are following usual pattern and falling back due to summer holiday season. However mill prices remain relatively stable with raw material costs still high. Prices are starting to rise in Asia and US and will follow in Europe. Prices will rise later this year early next.
|
|
+3%
|
|
Mild steel flat and angle
Tata and other European mills have announced intention to increase prices by £30-50 per Tonne in September. It may be difficult to implement in face of poor demand.
|
|
|
|
Mild steel box
Price more closely related to Sheet
Poor demand keeping lid on prices
|
14.07.11 - Experienced Metal Industry sales executive
14.07.11 - Monthly Price movement guide
|
|
|
Stainless Sheet
Decline in nickel price continued in June.
304 price down by £130/tonne
Demand is generally poor as people look to reduce stocks.
Nickel prices are recovering slightly and prices will stabilise in August. |
|
|
|
Stainless Bar and Tube
Falling surcharge is causing prices to dip, but long products are generally not as volatile as sheet. Some slight reduction.
|
|
|
|
Aluminium Sheet and Tread
Aluminium price on LME has stabilised. Market is now over stocked as stockists over ordered when faced with long mill lead times.
Some panic selling by stockholders at the moment is being driven by high inventories. |
|
|
|
Aluminium Circles
LME now stabilised. Capacity is now more readily available and mill lead times coming down.
|
|
|
|
Steel Sheet
Although there is some downward pressure, fuelled by poor demand, prices are fairly static.
Cost prices of any new material being delivered by mills (ordered in Mar/Apr) is extremely high compared to market prices. However prices are unlikely to rise over summer holiday period
Prices will probably bottom out in July / August. |
|
|
|
Mild steel flat and angle
Scrap price has started to climb slightly and there is suggestion of £15-20 increase in July.
May be difficult to sustain over summer months
|
|
|
|
Mild steel box
Price more closely related to Sheet
Poor demand keeping lid on prices
|
01.07.11
15.03.11
04.01.11
02.07.10
10.06.10
We have offices in:
- Rochdale, Greater Manchester (North West)
- Middlesbrough, (North East)
We store stock in:
- Rochdale, Greater Manchester (North West)
- Middlesbrough, (North East)
- Ellesmere Port (North West Port)
- Antwerp (Main European Port)
For information on our comprehensive Project Management services, please click here.
Copyright © SES Metals Ltd. All rights reserved.