General | Feb 05 2006
According to industry consultants MEPS the outlook for steel prices in European markets has stabilised in recent months, which is encouraging news for prices.
It notes buyers have returned to the market as they look to replenish supplies that had been allowed to rundown late last year and early this year, while at the same time supply remains reasonably tight.
As a result, MEPS is forecasting flat product prices will remain at around current levels for several months, only easing towards the end of the year as imports are expected to increase and the current tightness in the market is to be alleviated.
It forecasts prices will ease further early next year, particularly as production is restored to more normal levels.
The outlook for long products is similar, though prices will move higher in coming months before easing in the latter part of the year in MEPS’s view.
Assuming global conditions remain steady, it expects long product prices in March next year will be similar to current prices.
