After a weak summer period, US producers, determined to offset their high input costs, announced two transaction price hikes during the month of August.

They have been talking of further rises to come but only a small amount of business is being conducted at these higher levels.

Delivery lead times are still relatively short, which would suggest that mills do not have full order books. With material so plentiful, it is likely that the increases will not hold for long.

Canada
Although order intake at the Canadian mills is relatively soft and delivery lead times are quite short, producers are instigating a series of price rises to attempt to recover growing raw material costs. Customers are reluctant to buy at the higher values until they are sure that demand has improved. Service centres will have to battle to recoup any increases from their customers.

Western Europe
West European demand did not pick up following the long holiday break. This was partly due to grave concerns over the financial situation across the region. The mills are experiencing low levels of order entry and, consequently, some production cuts have been announced. The mills have signalled their intention to push prices up for the fourth quarter but the success of this initiative is questionable.

China
China’s Baosteel, together with a number of other major domestic mills, elected to lift their official ex-works figures for October bookings of strip mill products, despite warnings that demand is not likely to grow in the months ahead. Export sales continued to contract in August because of a weakness in overseas demand, particularly from Europe. Moreover, China’s currency has appreciated and offers from other producers in Asia are very competitive.

Japan
In Japan, the ongoing strength of the yen has adversely affected export sales. Tokyo Steel slashed domestic list prices for September contracts, citing strong import competition but the company intends to lift its October selling value by between 3 and 7 percent - the first upward movement in seven months.

South Korea
Inventory adjustment is slow in South Korea. Stocks of flat rolled items climbed again in July – the seventh successive monthly growth. However, import volumes have declined. The manufacturing sector remains depressed. The mills continue to offer substantial discounts on POSCO’s latest list.