STEEL PRICES TO RISE
EACH YEAR TO 2016
MEPS forecasts a recovery in its global steel price over the next
three years. In the company's latest long term forecast, it predicts
that 2013 will be the low point in this cycle. Consumption should begin to pick
up in 2014 as the economic climate improves. Nevertheless, there are
a number of difficulties to overcome.
Government spending restrictions in western nations are expected to
continue to limit infrastructure and construction activity.
Furthermore, concerns are developing over a slowdown in Chinese demand.
Moreover, buyers across the world are likely to remain cautious
about rebuilding inventories. However, we do expect some degree of
restocking next year. Consequently, the average steel price in 2014
is forecast to be above the year earlier figure.
A reduction in iron ore costs is anticipated over the medium term.
This could limit the prospects for steel price rises. Nevertheless,
domestic mills will, almost certainly, attempt to push through
advances in selling figures in a bid to recover profitability as
demand levels grow. MEPS, therefore, envisages an uptrend in average
transaction values through to 2016.
Steel Price Forecasts to 2017
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