Author: Paul Ploumis12 Jun 2014 Last updated at 05:08:56 GMT
LONDON (Scrap Monster): The MEPS All Products Composite EU Carbon Steel Price has reduced a 51 month slump in June 2014. MEPS predicts that there will be further small declination of prices in the coming months. But, in the June issue of the company’s report, the On-Line Steel Price Forecasting Service and European Steel Review, an upturn in the steel selling prices will be shown.
According to MEPS, the steel market is likely to continue on low price offers form the steel making nations in Asia and CIS in short term. The negative price pressure from the customers leads to the decreased rate of raw materials in steel making. This also plays a key role in making low priced offers. But, the inventories of the supply chain are modest.
Recently, the end users have restricted the purchase of steel to only those who need for immediate purpose. The steel consumers are holding out for possible lower offers in the coming days. Due to these reasons the service centers also have not been taking speculative purchases.
MEPS is expecting a decrease in the steel mill activities as most of the producers are busy in palnt maintenance. There will be weak supply of finished steel products. Due to reduced steel supply along with lower inventories, there will be some shortages in the metal after summer.
Customers will likely to make orders for new material as demand picks up. The steel mill should be able to get steel price hike by the end of summer due to the fewer inventories through the metal supply chain.