Global steel prices remained very strong in the first quarter of 2004 with the CRU international steel price index average for the March 2004 quarter having increased by 30% from the December 2003 quarter, South African steel producer Iscor said on Monday.
United States domestic hot rolled coil prices rose by 46% in the same period and US domestic long product prices by 25%.
However, with the time lag from taking export orders to delivery, the bulk of this price increase will only be realised by Iscor during the June 2004 quarter.
Liquid steel production at Iscor for the March 2004 quarter is expected to decline compared to the previous quarter, due to the throat armour repair on Blast Furnace C at Vanderbijlpark, steel sales are expected to increase slightly.
South African domestic steel consumption for January and February 2004 is expected to increase by 16,7% year-on-year, driven primarily by restocking by merchants and end users.
Iscor continues to focus on cost reduction and the group’s previously announced restructuring programme is on track. — I-Net Bridge