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PPI watch: Alcoa and Dow Chemical raising prices

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  • PPI watch: Alcoa and Dow Chemical raising prices

    Midland, Mich.-based Dow said it will raise prices for acrylic monomers by 3 cents per pound and prices for vinyl acetate monomers by 4 cents per pound.
    http://www.forbes.com/feeds/ap/2009/...ap6436267.html

    Alcoa Forged and Cast Products, a division of Alcoa Inc (AA.N), told customers this week it was raising prices on QC-10 forged mold block products used in the tooling market.

    The higher prices will go into effect June 1.

    "The increase, which ranges from 15 to 25 percent on select sizes, is driven by overall market conditions and is consistent with our commitment to expand the market and fund new technologies," Victoria Kale, marketing director at Alcoa Forgings and Extrusions, said in a letter to customers.
    http://www.reuters.com/article/marke...38404220090522

    and the corn crop?

    The wet spring has slowed planting across a region that accounts for somewhere between a quarter and a third of the country's corn crop. In Illinois, 10 percent of the expected crop has been planted at a time when more than 80 percent typically would be in the ground, according to the U.S. Department of Agriculture.

    Indiana has 11 percent of the crop planted rather than the usual 70 percent; Missouri's statewide figure is 39 percent, compared to what would typically be 75. Ohio farmers have planted just less than a quarter of their corn rather than the usual two-thirds by early May.

    Planting delays can cut production because crops aren't mature enough to benefit from the early July heat they need to grow. Prices can rise as a result.

    Corn futures prices have been increasing since wet weather set in late April, running up to about $4.50 a bushel Tuesday on the Chicago Board of Trade, an increase of more than 10 percent.
    http://www.coshoctontribune.com/arti...WS01/905130317

  • #2
    Re: PPI watch: Alcoa and Dow Chemical raising prices

    Soybeans Rise to Eight-Month High on Record China Shipments

    http://www.bloomberg.com/apps/news?p...=latin_america


    China’s soybean imports in May could exceed 4.5 million metric tons, the China National Grain and Oils Information Center said in a statement today. Inbound shipments may reach 4.2 million tons in June and exceed 3 million tons in July and August, it said. Imports were a record 13.9 million tons in the first four months of the year, according to the customs office.

    [..]

    Soybeans for July delivery rose as much as 0.8 percent to $11.95 a bushel, the highest price for the most-active contract since Sept. 26. The contract traded at $11.925 a bushel at 3:20 p.m. Singapore time.

    Plantings of soybeans, corn and wheat in the U.S. have been behind the average in the previous five years as wet weather made fields too muddy for heavy farm machinery.

    Soybean planting in the U.S. as of May 24 was 48 percent finished, compared with 49 percent a year earlier, the Department of Agriculture said yesterday. The five-year average for the date was 65 percent.

    [..]

    About 79 percent of the spring-wheat crop was seeded, versus 50 percent a week earlier and 97 percent a year earlier, the department said. The average for the date for the previous five years was 95 percent.

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    • #3
      Re: PPI watch: Alcoa and Dow Chemical raising prices

      American steel mills raising prices $20-30/ton

      AK Steel announced a $20/ton sheet price increase early in the week and other mills followed with similar, or higher, price increases. Market sources
      believe these moves could stimulate orders from buyers seeking to lock-in second half prices.

      Nucor and ArcelorMittal are raising spot prices by $30/ton for July shipments. Nucor is also restoring, effective immediately, the collection of all published price extras.

      Severstal North America is going up 6% on all sheet products, amounting to a roughly $20-30/ton price hike, depending on the product.

      AK’s $20/ton increase on all carbon sheet products is effective with new orders scheduled for delivery July 1 and after. Sources say the move could help boost US hotrolled coil prices to at least $380/ton, fob mill, and possibly as high as $420/ton.

      "We have seen some steady improvement in our bookings and are definitely looking to improve our pricing outlook," said a competing mill executive.

      One stockist thinks the moves could sway buyers to get tons under contract sooner rather than later. "If everybody else follows - and I don't see why they wouldn't - we get through July and August, maybe you do another $20 increase then... by year-end maybe we could be back up around $460 a ton," he said.
      http://www.steelbb.com/americansteelreview/


      some historical steel prices: http://www.econstats.com/rt_steel.htm
      Last edited by Slimprofits; June 04, 2009, 05:28 PM.

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      • #4
        Re: PPI watch: Alcoa and Dow Chemical raising prices

        My, all this "Deflation".
        Mike

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        • #5
          Re: PPI watch: Alcoa and Dow Chemical raising prices

          Originally posted by Mega View Post
          My, all this "Deflation".
          Mike
          But wait, housing prices are going down, isn't that deflation!!!! ;)

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          • #6
            Re: PPI watch: Alcoa and Dow Chemical raising prices

            Originally posted by Jay View Post
            But wait, housing prices are going down, isn't that deflation!!!! ;)
            it is according to economics for retards...

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            • #7
              Re: PPI watch: Alcoa and Dow Chemical raising prices

              http://www.metalcenternews.com/2009/...EndTunnel.html

              A year ago, basic commodity steel was selling for over $1,000 per ton. It sank as low as $360 earlier this year, but has since recovered to nearly $500, according to various sources. Higher prices were not just inevitable, but necessary, executives say.

              “With the pressure on the mills to get out from under losses, to pay for higher cost raw materials and to get their numbers above variable cost, [raising prices is] something they have to do,” says Dave Lerman, president of Steel Warehouse, South Bend, Ind. “I think they will summon up the courage to keep working in that direction.”

              U.S. Steel has announced three price increases for July and August totaling $120 per ton. Others have followed suit. How can steelmakers raise prices in the absence of demand?

              “The mills have recognized that at less than 50 percent capacity utilization, with prices so low, it’s simply not a sustainable model. The mills cannot cut costs any further without damaging the steel industry and, quite frankly, the infrastructure of this nation,” McNeeley says.

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              • #8
                Re: PPI watch: Alcoa and Dow Chemical raising prices

                http://www.chemie.de/news/e/106316/

                15 Sep 2009 - PPG Industries’ fiber glass business announced that it is raising prices 5 to 7 percent effective Oct. 1, or as permissible by contract, for all thermoplastic chopped strand and thermoset dry chopped strand products.

                "The increase in chopped strand pricing reflects the increasing costs of raw materials and historically weak pricing in the market,” said Kevin McDonald, PPG general manager, fiber glass. "As worldwide demand returns, price increases are needed to cover cost increases and enable reinvestment in furnace capacity.”

                PPG’s price increases will affect all thermoplastic chopped strand and thermoset dry chopped strand products.

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                • #9
                  Re: PPI watch: Alcoa and Dow Chemical raising prices

                  http://www.purchasing.com/article/32...paperboard.php

                  Price increases for September shipments of $40/ton have been announced on all grades of coated and uncoated recycled paperboard by nearly all major North American producers to offset raw material cost increases.

                  Strathcona Paper, Graphic Packaging, RockTenn, Sonoco, PaperWorks Industries, Caraustar, Newark Group and Ox Paperboard all have made the first price-increase announcements for recycled paperboard since July 2008. Graphic Packaging says it is increasing prices "to offset rapidly escalating fiber costs and steady increases on all other costs."

                  The price increase may be a tough sell for the mills, though, since demand has dropped this year. Recycled folding carton production was up 5.5% in July compared to June 2009, according to a report issued this week by American Forest & Paper Association, but down 2.5% over July 2008 production. Year-to-date through July, production at recycled board mills is down 5.5%. AF&PA reports that recycled board mills operated at 85.2% capacity in July 2009 but down from 89.8% in July 2008.

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                  • #10
                    Re: PPI watch: Alcoa and Dow Chemical raising prices

                    http://www.metalbulletin.com/Article...-November.html

                    U.S. Steel set to hike tags for November

                    PITTSBURGH 08 September 2009 21:45

                    U.S. Steel Corp. has advised customers that it is raising prices for November and December.

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