2006 sheet steel prices have peaked

Purchasing Magazine reports that 2006 flat rolled steel prices may have peaked in North America, and are on their way down. Downward price corrections are to be expected according to Global Steel Consultants' Mike Mytton, because of a general weakening in US manufacturing. Global Steel Consultants also consider that steel prices are now on a decline, because of the growing oversupply situation in China.

'Few people would ever have thought that hot rolled prices would even get as high as they did this summer, when prices hit the $630/ton range' says Mytton. The decline to ~$600/ton today thus comes as no surprise.

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