Global Steel price recovery in 2017: MEPS

UNITED KINGDOM November 13 2015 9:02 AM

LONDON(Scrap Register): In a new report on the global steel market, MEPS predicts an upturn in its World Average Carbon Steel Price in 2017. A substantial reduction is anticipated in 2015 – the fifth consecutive annual decrease. This is expected to be followed by a more modest decline in the next year.

Mergers and acquisitions are predicted across the international steel sector as companies strive to survive. Rationalisation in the raw material supply industries is also anticipated as operating costs outweigh selling figures at several of the smaller operators through 2016.

Chinese steel exports are likely to be reined in, as mills in other countries, will almost certainly, initiate unfair trade cases against producers in China, over the next twelve months.

The combination of a slight improvement in the global economy, a leaner raw materials supply industry and rationalisation in the steel sector, should lead to a modest upturn in steel selling values in 2017 and beyond.