Asian Markets Driving Steel Prices

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By Chris Shaw

While steel prices fell modestly during the European summer thanks to reduced activity levels Asian prices have trended higher, industry consultant MEPS noting the overall result has been fairly steady global steel prices.

Looking forward, the group notes in China domestic values are moving sharply higher thanks to higher raw material costs and a tightening of supply, a situation it expects will continue as a number of mills conduct maintenance operations and so reduce output.

While stocks in Japan have risen prices are also expected to move up in coming months as imports fall, which should slowly filter through into lower inventory levels. Elsewhere in Asia prices are also expected to move up, with MEPS noting there are signs of increased demand in South Korea and Taiwan.

Inventory levels in Canada are now believed to be low and demand should pick up given the seasonal slowdown has passed, though as MEPS notes activity levels are yet to show any significant improvement.

It also notes prices are anticipated to move higher in Europe in coming months as the level of imports is predicted to fall thanks to lower availability of Chinese output and a need to cover higher raw material costs.

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