The MEPS Nordic Average Hot Rolled Coil transaction value increased by 1% in December 2010, broadly in line with our expectations last month. This follows three consecutive monthly declines. Average Reinforcing Bar prices in this region rose by 8% as higher scrap costs exerted upward pressure on selling figures. The outlook for 2011 is for further gains across all product categories. Forecasts for the main flat and long products are now available in MEPS' expanded Steel Prices On line service.

Mills have announced price rises to recover their higher input costs and are expected to continue with output restrictions in a bid to re balance supply and demand. This should help to boost transaction numbers early in the New Year. Growing consumption, coupled with inventory re-building at many distributors, is likely to push up values into the second half of 2011. Anticipated rises in raw material costs are also expected to lead to higher figures, at least in the short and medium term.

The MEPS Nordic Average is calculated using transaction values identified in Denmark, Sweden, Finland and Norway.

(Sourced from Nordic Steel Price and Nordic Steel Index)