Food Production Daily
31/03/2005 – Steel prices might have been in decline through January and February but a pick up in March is likely to continue into the third quarter, predicts analyst MEPS.
However, the UK-based steel analyst suggests that prices will begin drifting downwards by the end of the year and beyond. The prediction comes after MEPS suggested European steel prices across the board were beginning to show signs of decline in March. According to MEPS, March figures have fallen from February levels by between two and four points for individual flat rolled products, and by as much as ten points for long products.
The analyst says that customers are holding off from placing fresh orders, and less than the normal volume of agreements for new business have been reported this month. They are living off stocks that have been mounting since the latter part of 2004.
There is undoubtedly a stock overhang in Europe and North America. However, the strong markets in Asia has lead MEPS to predict that global prices will continue to be quite strong – at least in the near term. Projections indicate that world steel prices will end the year below the values at the beginning but will remain solid.
A reminder that a convenient link to the MEPS web site, a very interesting site indeed, is in our left margin on this BLOG.