The latest MEPS price forecast is mixed. In the EU strengthening order books continue to precipitate rising prices. They have however noted an increase in import licence applications for the middle of the year. This could contribute to a weakening of prices in the last quarter of 2006 continuing through to the early part of next year.
In Asia, strengthening Chinese exports have eased the downward pressure on prices there, whilst adding to the supply situation in nearby Japan and Korea helping to hold back upward price pressure. However the “tight” situation with iron ore supply is likely to ensure that any downward pressure on prices will be resisted.
In North America it is anticipated that prices will hold steady for the next two or three months before the pressure of imports starts to “kick in” leading to a decline in prices. This is likely to continue through until 2007 when it is forecast that world demand could ease the import situation.
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