SWEDISH STEEL PRICE FORECASTS - HOT ROLLED COIL

The MEPS Swedish Hot Rolled Coil average price this year, is expected to be 5 percent above the 2006 figure at a new record high of almost SKr4900 per tonne (€530). During 2008 this figure is forecast to move up another 2.3 percent, with the annual value topping SKr5000 per tonne. The quarterly average transaction value for fourth trimester business is expected to drop by SKr115 per tonne from the previous period. Negative pressure set in, causing customers to delay purchasing.

Mills are likely to push for rises ahead of the implementation of the new iron ore contract in April 2008 but these may not take hold initially. Customers are expected to begin restocking in the New Year. This should support transaction price advances in the second and third quarters. However, as a result of continued import pressure and a weaker economic climate, these could be only modest. A seasonal downturn is anticipated in the final period as year end de-stocking reduces buying activity.

Source: European Steel Review Supplement by MEPS (International) Ltd. - click here for a free September 2007 sample copy