London, 5 October 2011

The MEPS - Global All Products Composite Price recorded a slight increase in September and now stands at $US852 per tonne. This was mainly as a result of significant flat product price advances in North America. Mills’ cited rising raw material costs for the, greater than anticipated, price hike. Nevertheless, global demand remains sluggish with customers reluctant to place orders in the face of ongoing economic uncertainty.

A decrease in the Global All Products Composite Price is predicted in the short term. Mills’ attempts to implement price increases may prove unsuccessful due to poor stockist and end-user demand. Recent price advances in North America are unlikely to hold. There is oversupply in the market and a growing threat from imports as US prices remain higher than those in other regions. However, MEPS believes a prolonged reduction in Asian steel prices is doubtful because mill input costs remain elevated.

Steel selling figures are expected to rise in the first half of 2012. Dwindling stock levels, combined with mill production cuts, could assist the prospect of any price increases. Nonetheless, the unsettled global economic conditions are likely to limit growth in steel consumption over the next twelve months.

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Source: MEPS Steel Prices Online