MEPS have published their latest Steel Price Forecasts. The following summary relates to strip mill products:-
Production cuts of 15% and reductions in inventory have enabled some steel producers to make modest price increases for the final quarter of 2005. These small increases are likely to be maintained as long as production is curtailed, and import volumes do not increase.
Reasonably stable prices are foreseen through to spring 2006, and distributor demand is increasing. Whilst US demand is likely to increase, Canadian demand remains sluggish. Imports from Asia could threaten prices by the middle of next year.
Flat product prices have continued to slip and are likely to remain at current levels until January. Cuts in output are expected to take place in China, although excess stocks remain a problem. Production restrictions may stabilise prices, although as the differential between prices in the Eastern and Western market’s increases export orders could impact upon prices around the world.
The full reports can be read here:-