MEPS GLOBAL PRICE FORECAST UPGRADED DUE TO HIGHER INPUT COSTS

MEPS has noted a complete turnaround in the North American flat products market over the last month. US transaction values are moving up quite rapidly as producers release a succession of price proposals on the back of expectations of higher input costs. Moreover, tonnage for December is limited, partly because of increased export activity by a number of mills.

In Canada, transaction figures are heading in a positive direction, with steelmakers announcing further rises for February. The mills claim that their order books have improved dramatically as customers react to the increase announcements. Real demand is still not buoyant but many market players expect a modest pick-up during the first quarter 2011.

The price tendency in the Chinese market continues to be upwards, supported by rocketing raw material costs. Reflecting this positive attitude, leading producers have elected to lift their official January ex-works figures for flat products.

Over the last few months, Taiwanese producers have suffered from an influx of competitively priced imports. This pressure led CSC to discount its January/February list for flat products by an average of 3.2 percent. However, the market is now showing signs of a strong recovery.

The west European mills are targeting flat product price rises for early next year to compensate for their higher input costs. The recent strengthening of the US dollar against the euro is working in their favour by reducing the import threat, as is the current low level of stocks which will need to be replenished. However, consumption is unlikely to grow to any great extent. For a more detailed report please see the December issue of the International Steel Review


Source: MEPS - International Steel Review - click here for a free sample copy.

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