UK based consulting firm GFMS said that steel prices broadly declined in November 2007 in line with their expectations of market weakness in Q 4 of 2007.

GFMS said that the main reason for the decline include

1. Emerging markets led the way with CIS mills forced to sell larger volumes into weaker markets at lower prices we also saw CIS mills back in Asia, which is a sure sign of market over supply.

2. European prices struggled on the back of higher inventories, a wide range of importers seeking to access the highest priced market and of most concern, a weaker economic environment.

3. The US market continues to march to a different cycle, as low inventories and a low domestic price should allow domestic mills to overcome a weak economic environment.

4. Somewhat surprisingly however, Asian prices were largely firm. A renewed interest in purchasing along with lower Chinese export volumes has helped strip prices.

GFMS said that “The general consensus is that the market will pick up in the New Year. However, the economy in mature markets appears to be weakening further, although China and emerging economies are holding up well for now. This could extend the weak pricing environment into the early part of Q1 of 2008.”

For subscribing to GFMS report, please visit