GLOBAL STEEL PRICES CONTINUE DOWNWARD TREND IN JUNE

MEPS – Global All Products Composite Price decreased in June due to weakening demand. As predicted, reductions were noted in both flat and long categories. Buyers were reluctant to purchase large volumes of material as they remain uncertain about future market trends. Consequently, mill delivery lead times shortened.

Customers in all regions are likely to restrict purchase volumes in a bid to keep inventories low over the coming months. A slowing economic recovery in most countries will, almost certainly, restrict consumption of steel products. Consequently, transaction values are forecast to fall further in the short term. Reductions in input expenditure are anticipated and likely to add to the downward price pressure during the second half of the year.

MEPS predicts that prices will recover at the end of 2011 because distributors are likely to begin placing orders for delivery in the New Year. Raw material costs are forecast to rise in the first quarter of 2012 as new capacity installations come on stream to meet expectations of higher end-user demand.

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