Steel stocks sink as UBS warns on pricing deterioration

‘U.S. steel market fundamentals have deteriorated more quickly than we had expected to date in 2005, prompting us to lower our 2005 and 2006 sheet price estimates in line with recent spot-market corrections,’ Tanners said.

So far this year, steel prices have been under pressure.

Tanners said prices for hot-rolled steel have fallen since January from $660 a ton to $540 a ton. That’s below the 2005 estimate of $560 a ton, which was lowered 8%, and the estimate for next year of $465, reduced by 10%.

For benchmark sheet prices, the 2005 forecast is now $520 a ton, down from $550 previously.

Bar and plate prices have fared better, according to the analyst.

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