September 08, 2008

Steel prices may fall in H2 of 2008 - MySteel

Mysteel believes that high steel prices, driven by speculation, may actually slip later this year.

It said that “As per report CIS HRC prices since December have increased by USD 380 per tonne to USD 970 per tonne and CIS Rebar up USD 350 per tonne to USD 925 per tonne. The major raw materials are now up by USD 155 per tonne and much less than the rise in steel prices. We thus believe steel will fall in H2 of 2008 by around USD 100 to USD 200 per tonne.”

It added that “Our forecast is inline with the Mysteel April 7th 2008 forecast, which states Chinese commodity grade HRC prices will fall back to around USD 700 per tonne FOB from USD 900 to USD 950 per tonne now. This will take place in the next three months from slower growth in the world economy, current high inventory levels and a saturated demand.”

(Sourced from MySteel.net)