Balli Steel Reports European Steel Markets Cushioned From Price Correction By Weak Euro

Balli Steel, one of the world’s largest privately owned independent commodity traders, highlights that European steel markets have been cushioned from the effects of the recent downturn in global steel prices due to the weakening Euro. Balli Steel’s research shows that steel prices in US Dollars fell by approximately 20% between their peak in mid April and May 2010. However, the weakening of the Euro against the Dollar over the same period meant that the relative decline in steel prices was only 3.3% in the Eurozone.

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The weakening of the Euro against the dollar has enabled steel producers in Eurozone markets to continue exporting steel for a longer period of time as well as discouraging domestic consumers from importing steel from elsewhere.

However, Balli Steel pointed out that the real demand for steel across the European market remains sluggish. With government spending both directly and indirectly impacting on steel demand, the widespread budget cuts and austerity measures being taken in countries such as Spain, Italy, Germany, France and the UK has led to a significant reduction in demand.

Nasser Alaghband, CEO of Balli Steel commented: “The weakening Euro has acted as a lifeline to European steel producers, making them more competitive to importers whilst being able to fight off competition from overseas. This trend may continue for some time, however, with falling demand there is a real need for production to be checked if prices are to be maintained. We have already seen a number of producers idle their mills in recent weeks and we expect this to pick up momentum, especially as the traditional summer holiday season approaches.”

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Balli Steel Reports Surge In Production Leads To Dramatic Fall In Chinese Steel Prices

Balli Steel, one of the world’s largest privately owned independent commodity traders, has highlighted that a surge in Chinese steel production since the beginning of 2010 has led to the recent dramatic decline in steel prices from their peak in early April.

Figures from the World Steel Association show that approximately 158 million tonnes of steel were produced in China during the first quarter of the year. In addition, steel production peaked at 55.4 million tonnes in April 2010, a 27% increase on April 2009, representing the highest amount of crude steel that China has ever produced in a single month.

This dramatic surge in production has led to a corresponding decline in steel prices over the past six weeks. In January 2010, Chinese steel prices were approximately $500 per tonne, rising to a peak of $700 per tonne in early April. However, overproduction has led to prices falling back to $550 per tonne by mid-May.

As China is by far the single largest steel producer in the world, accounting for approximately 47% of global production in 2009, this overproduction of steel and the corresponding decline in prices have had a significant effect on the global market.

Balli Steel emphasised that what happens next to the area’s steel prices will be dependant on how quickly China can cut its production and estimates that the country needs to reduce its output to approximately 40-45 million tonnes per month by July in order to maintain stable pricing.

Gianpiero Repole, Business Development Director of Balli Steel comments: “The Chinese steel market remains a strong prospect for the medium and long term with the country’s growing economic dominance in the region ensuring that there will be an ongoing demand for steel. What we are currently experiencing is short term timing difficulties with sharply rising prices at the beginning of the year leading to a surge in production, ultimately resulting in over production and falling prices.

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Snap Sampling Plans! Improves Your Quality Control Systems

Quality Assurance Solutions focuses on creating and selling products that help companies setup quality assurance systems and quality control processes. Quality Assurance Solutions provides specialized content, instructions, and education to help individuals improve their company’s quality assurance program. Quality Assurance Solutions website contains extensive information on quality management standards, quality management tools, and quality management systems.

Snap Sampling Plans! Improves Your Quality Control Systems

Quality Assurance Solutions announces the release of Snap Sampling Plans! software for establishing sampling plans for inspection quality control. Every manufacturing company needs to inspect product to assure the product meets requirements. The inspection stages within a company include receiving inspection, in-process inspection, and final inspection. Snap Sampling Plans! easily creates these sampling plans.

When inspecting for a given feature, companies rely on sampling inspection instead of 100% inspection to reduce costs. From the inspection results, the company decides whether to accept or reject the inspected parts.

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