Steel in 2011 should rise in price by 66%

According to the publication "Faynenhnl Times", steel in 2011 should rise in price by 66%. The forecasts of our analysts are much more modest, but they also predict the growth of both prices and production. According to the director of the Department of GMC "Gosvnesinform" Vladimir Pikovsky, "a rise in price by 66% - this is possible in relation to the average annual prices for 2010, but not by December. The current increase in prices is situational and caused by the fact that the buyers became its stocks, and in Australia, coal mines were flooded due to floods, as a result, the coal used to smel up steel has risen in a halt. This means that the cost of metallurgists has increased, and not their income. I think that production for the year will increase by 5-7%, and the price is 28-30%. ”

At the same time, economist Alexander Zholuda notes that the growth of world prices for raw materials for our metallurgists is even beneficial. “Given the rise in the price of Australian coal and ore, which is supplied to China, their metal will also rise in price, and Ukraine, which has its own raw material base, will receive a competitive advantage and will be able to increase export deliveries,” Zholud said.