North America Steel Price Forecast - MEPS
MEPS predicts that strip mill product selling figures will
increase, modestly, in December. Price hikes by the domestic steelmakers are
likely to be, only partially, successful because distributors are expected to
purchase cautiously as they consider their year-end cash positions and keep
inventories to a minimum. The upturn for hot rolled coil is forecast to be
greater than that for cold rolled and galvanised material.
Plate transaction values should stabilise, in the immediate future. Mill price
hike initiatives should prevent further erosion. However, gains will be
difficult to achieve due to subdued demand.
MEPS anticipates that long product selling figures will be steady until the end
of the year. Delivery lead times from local steelmakers are relatively short.
However, third country imports are uncompetitive. Furthermore, scrap costs have
bottomed out and expenditure on graphite electrodes remains elevated.
A degree of restocking in the supply chain and an upturn in scrap costs is
predicted to aid North American producers’ ambitions to lift flat and long
product prices, in the first quarter of 2018.
MEPS - International
Steel Review - November 2017 Edition
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