josemourinho

Steel prices may continue to be under pressure

As the margins for billet producers are at near record levels,there is no expectation of a production cutback. This is likely toexert further pressure on steel prices during the rest of thecurrent year and in 2009.

Mumbai, Aug 8 For a variety of reasons, the market outlook forsteel does not appear positive.

Prices are under pressure and would continue to remain so. Cracksare beginning to emerge in the steel billet and long productmarkets with the product performance confirming a distinctionbetween industrialised countries and emerging economies. No doubt,demand in certain markets – notably the West Asia and theBRICS economies – remains firm; but in major industrialisedcountries, the OECD area, demand growth is easing followingperceptible slowdown in economic activity.

Price Differential

High and rising energy costs have added to the uncertainty. Also,the impetus from higher raw material prices is beginning to fade.