The forecast was that world steel prices will remain weak for the rest of 2010 and may be a little later too. But they have started to climb. Recent increases are as high as 12%. China’s steel production has been cut back by 5% to meet government energy shortage requirements. By year end China would have produced nearly 550million metric tons; nearly half the worlds requirements.
Steel makers in rest of the world – Arcelor Mittal, Tata Steel, Thyssen, Posco, AK Steel have also increased prices. But the threat of dumping from China, backed by illegal subsidies, will always be there.
But some steel markets remain weak. Price of steel beams and structural has fallen. Nucor Corp. USA, has lowered its last quarter outlook. Several experts believe the rise in steel price may not last beyond spring 2011. A close watch on Chinese production can tell a better story. Inversely, price or iron ore is expected to fall by 12 to 13%. That would pressurize steel producers lower their prices.
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