We have been seeing reports recently on signs of increasing demand for steel, along with speculation on higher steel prices.
Stocks are low at distributors, and some grades and sizes are unavailable. galvanised strip is currently very difficult to find in the UK.
However, whilst there seems to be a real increase in demand in China, it remains lacklustre in the West. Whether or not demand is on the increase globally or just regionally remains to be seen. The steelmakers have a track record of “talking up” the market in an attempt to increase prices.
Whilst we believe we are through the worst, the road to recovery is likely to be pedestrian at best, and it would be a brave speculator who would risk increasing stock levels significantly at this moment.