Global Construction Sector Bears the Brunt of Recent
Steel Price Hikes
MEPS International Ltd. reports that in the period January to September 2017,
the average cost of steel, purchased for use in the global construction sector,
increased by 18.7 percent.
Less substantial, but double-digit steel price rises were also recorded for
steel used in the shipbuilding industry and machinery manufacturing sectors –
according to data contained in the company’s September report -
International Steel Review.
It is interesting to note that, despite the substantial upturn in the company’s
published global average steel price for the construction sector, North American
steel producers were, largely, unable to join the latest recovery in selling
values, during the same period.
MEPS’ analysis indicates that global market prices, for steel products, used in
construction, may falter in the medium term. However, average steel selling
figures in early October, for supply to the main consuming regions, remain
reasonably firm. Mill selling figures are predicted to continue to follow a
similar pattern to the end of the year.
Traditional steel price decreases resulting from, weather related, market demand
are likely to be partially offset by the high cost of mill input raw materials
and consumables. However, the prospects of declining prices in the early months
of 2018 are ever-present.
MEPS - International
Steel Review &
MEPS World Construction
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