WORLD AVERAGE CARBON STEEL PRICES - LATEST FORECASTS FROM MEPS

WORLD (GLOBAL) - ALL PRODUCTS COMPOSITE CARBON STEEL PRICE FORECAST

August month-on-month (year-on-year) percentage changes:

All Products Composite Price: +1.9 (+22.1)

The MEPS – Global All Products Composite selling figure increased by over $US10 per tonne in August. However, this rise was due to transaction value adjustments in Asia and North America. MEPS do not carry out research on steel prices in Europe in August because of the difficulties in contacting respondents during summer vacations. Moreover, few deals are concluded during this period because of holidays. Consequently, EU Average values are rolled over from July but do take into account currency exchange rate movements in August. Higher raw material costs pushed values upwards in Asia. Selling figures decreased in North America as market sentiment deteriorated. Uncertainty surrounding the world economic climate forced buyers to remain cautious.

MEPS have a modest upgrade to their short term forecast this August due to a change in currency exchange rates and higher raw material values. Nevertheless, MEPS believe that transaction figures will soften in the second half of 2010. Declining input costs will, almost certainly, push prices lower. Economic uncertainty is expected to add to the downward pressure on selling values. Distributors are also unlikely to build up stock levels before the New Year. However, these decreases could be only modest as prices approach a point which will yield no profit for the mills. Producers are planning to restrict output to help balance supply and demand.

Activity in the market is likely to improve early in the New Year as the global financial climate strengthens. This, coupled with anticipated rises in raw material costs, is likely to push selling figures higher during the first half of the year. However, we do not envisage a significant upward price surge due to reduced consumption from government funded projects.

 

Source: MEPS Steel Prices Online                       MEPS - World Carbon Steel Prices