NORTH
AMERICAN AVERAGE CARBON STEEL PRICES
- LATEST FORECASTS FROM MEPS
In the flat products category, the North
American average value fell in March. The market continues to be
soft. Demand is mediocre for most strip mill products but prices are
holding up for cold rolled and coated products. The mills have been
able to counter the recent falls in scrap prices by rises in basis
values in the US.
We forecast a reasonably stable situation
in April. It is likely that small price improvements can be made to
selling figures in the following months as scrap costs move upwards.
There appears to be little chance of any significant upturn in
demand but improving weather conditions should give an impetus to
the construction segment to avoid a serious price collapse.
A price slippage is, however, a real
prospect in mid year because consumption from the auto sector will
be lower. Moreover, inventories throughout the supply chain are well
above normal.
The North American long products average
value declined in March. Canadian demand is described as erratic. No
improvement has yet been noted in the US. Nevertheless, the steady
downward pattern from the end of last year appears to have been
halted.
We maintain our forecast of a steady
improvement in selling values for most long products through the
latter part of Spring and into the early Summer. After price
stabilisation we anticipate a fall in reported figures as Winter
approaches. The better weather conditions and a possible jump in
scrap costs underpin our thinking.
