MEPS World Steel Steel Price Prediction

MEPS World notes that the average price of flat products and steel pipes has increased by 4 percent since the beginning of 2017 compared to December. In addition, the price is more than 50 percent higher than the figure recorded in January 2016.

Therefore, in some cases, it is advisable to use restored pipes, which are much cheaper than new ones. In addition, the unique restoration technology provides restored pipes in Yekaterinburg in almost perfect condition, which allows them to be used in many areas of activity.

Recovered oil and gas pipes have proven themselves well in the creation of heat pipelines, water pipelines, and sewerage systems. Restored small-diameter pipes are used as supports for fences and barriers, and are also successfully used in various metal structures. New technologies for the restoration of used pipes make it possible to gradually expand the scope of application of restored pipes of various diameters.

In addition, the growth in prices for new steel products is foreseen by MEPS analysts in the first quarter, as in many countries there are trade barriers limiting the volume of imports. Nonetheless, MEPS predicts that steel sales prices are approaching their peak after strong gains in steel over the past twelve months.

Rising raw material costs have been a key factor behind the recent rise in steel prices. However, coking coal prices have dropped significantly since early December. This is likely to result in a significant reduction in contractual coking coal prices in the second quarter.

In addition, iron ore values ​​are also expected to decline during this period. Consequently, with a significant decline in raw material prices, steel prices are forecast to come under negative pressure between April and June. Nonetheless, MEPS predicts that blast furnace steelmakers will be able to raise their margins as cost cuts are expected to outweigh declines in steel prices.