Steel strip prices are likely to fall during 2006 according to the latest MEPS forecast. EU mills have been unsuccessful in implementing price increases in quarter one, despite production cuts implemented during 2005. The gap between prices in the EU and US compared to prices in Asia continues to widen which will inevitably lead to increased pressure on suppliers to make modest price cuts to stave off imports.
Whilst demand in China, which contributed to high price rises at the end of 2004 is expected to continue growing, Chinese steelmaking capacity has increases beyond internal demand causing fears in Taiwan of Chinese exports undermining prices.
Steel prices in India are forecast to remain stable in the face of growing demand and a 25% fall from April 2005, it was feared that further price cuts were possible.
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3 comments:
I think the prices will fall more than they think with the excess capacity coming online in China. Any additional thoughts on Stelco?
How about something technical? Ask the readers questions perhaps?
Gcs
I think you are right on prices, the overcapacity in Asia seems to be the key factor.
My own background is commercial rather than technical, and it seems there is little technical info available on the net. This is illustrated, by the large number of visits I have to the steel specifications section at :-http://www.steelstrip.co.uk/international_equivalents.htm
Perhaps our comments will be complementary, since I am on the technical side of making/rolling steel, to your side of selling it. Any technical questions, feel free to post in your blog, and I visit regularily, so hopefully I can give an answer for you, or at least direct to some place that can.
Cheers.
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