Steel price uncertainty

The economists at www.steelonthenet.com observe with interest the current divergence in opinion about future international steel prices. MEPS latest report (March 2007; see http://www.meps.co.uk/steel%20price%20forecast%20na3-07.htm predicts a 'substantial rise in the average steel price' in the coming months, and recent steel industry headlines from Google agree with this viewpoint.

Thus, on Monday 2nd April 2007, we saw the following reports:

Great days for steel industry ahead as prices set to soar
Financial Express - Bombay,India
If the current high in steel prices is not the product of a grand global level manipulation and cartelisation, there are great news for the industry ...

Costlier iron ore: Steel makers to raise prices
Times of India - New Delhi,India
Some companies like Essar and Ispat, which do not have the advantage of captive raw material would be forced to increase steel prices from April to recover ...

However, today (Tuesday 3rd April 2007) the headlines read a little differently:

UBS says steel prices will fall through 2007
Resource Investor - Herndon,VA,USA
According to Peter Hickson, an analyst at UBS, steel prices are poised to fall through next year as inventories rise and exports from China increase ...

Commodities: Steel prices poised to decline
International Herald Tribune - France
LONDON: Steel prices are poised to fall through next year as inventories rise and exports from China increase, which will reduce profits at US Steel and ...

The team from www.steelonthenet.com is following this topic with great interest. Watch this space !

blogger@steelonthenet.com