World steel prices show negative dynamics

The fall in production costs is forcing metallurgists to make a slight decrease in prices on the world market. Distributors buy very cautiously as they want to unload excess stock first.

In Poland, steel prices declined in euros. Manufacturers say the low numbers are in effect until the end of March in an effort to coax buyers into making deals for the time being. Business is also going pretty smoothly in the Czech Republic. Steel demand is still low, but better than a year ago. The factories are not making any official pricing announcements for 2015, so buyers believe there will be no price hike even in the second quarter. Service centers are cautious when buying due to weak demand.

American steel products deals have shown a sharp decline over the past month due to large volumes of cheap imports and bloated service center inventories. Chinese steel orders have been cut due to a slowdown in manufacturing activity, which has a negative impact on the price of steel. In addition, this situation is related to the government's decision to abolish VAT refunds on the export of certain boron-added products. However, it is likely that metallurgists are already ready to exploit other loopholes.

In South Korea, there is concern about the growing volume of imported steel in the country. Steel products continue to flood the market, putting negative pressure on steel prices. Falling raw material prices are also a downside factor as customers demand discounts.