The latest MEPS report suggests that steel prices may have reached a peak. Despite this Northern European Mills continue to pursue price increases for the third quarter:-
In Western Europe, producers are talking up period three prices but firm negotiations are only just starting. Customers believe that some of the numbers being proposed are far too high relative to current demand conditions, in which case, they would not be sustainable. Many buyers purchased sufficient material during the second quarter, ahead of anticipated further hikes. They can now afford to adopt a "wait and see" approach.
The availability of lower price raw materials from traders and suppliers outside of Europe and continuing weak demand is liable to put pressure on the mills. With iron ore and scrap prices weakening, it will be increasingly difficult for steelmakers to justify the continuing demand for increased steel prices.
Read the full MEPS report here.