MEPS ASIA STEEL PRICE FORECAST
The MEPS Asian average flat and long product composite prices both increased by
approximately US$25 per tonne, in February, compared with the previous month.
Mills attempted to recoup earlier rises in raw material costs. Furthermore, the
appreciation of local currencies pushed steel selling figures upwards when
denominated in US dollars.
Transaction values are forecast to continue to strengthen, in the near term.
Demand should pick up, for seasonal reasons. Mill input expenditure is expected
to remain at a high level. Speculative activity, in China, is likely to keep
prices volatile, albeit on a broadly upward trajectory.
MEPS believes that steel selling figures will come under negative pressure by
the middle of the second quarter. Reductions in steelmaking raw material costs
are envisaged, during this period. Coking coal contract prices, for the
April/June trimester, are likely to be settled at significantly below the first
quarter level of US$285 per tonne. Furthermore, iron ore prices are expected to
decline, as a result of high inventories in China and plentiful supplies from
the seaborne market.
Steel Review and
MEPS Asian Steel
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