EU FLAT PRODUCTS STAINLESS STEEL PRICE - LATEST FORECASTS FROM MEPS

*As anticipated, MEPS - EU Average austenitic grade transaction values decreased by approximately €50 per tonne in December 2010.

*Prices moved in line with alloy surcharges formulated using the short fuse calculation method.

*Acerinox continues to use a different computation to the rest of Europe.

*Distributors were reluctant to purchase material because they were unable to agree increased selling figures with their end-users.

Forecast

*Producers are optimistic that they will be able to raise basis numbers as well as alloy surcharges in January.

*Stock levels are low so customers are likely to concede advances early in the first quarter.

*Increasing opportunities from Russian customers should also help to boost export volumes in 2011.

*Consequently, MEPS believe transaction values will climb steadily in the first half.

*Continued economic uncertainty and an increased import threat could halt advances in stainless steel selling figures around the middle of 2011.


Source: MEPS Steel Prices Online                      MEPS - EU Stainless Steel Prices