The construction sector bears the brunt of the recent steel price rises

MEPS International Ltd. reports that between January and September 2017, the average cost of steel purchased for use in the global construction sector increased by 18.7 percent. Less significant changes were noted in the September report, but there was a double-digit increase in the price of steel used in the shipbuilding and mechanical engineering industries.

MEPS analysis shows that global market prices for steel products used in construction may fluctuate over the medium term. However, average steel sales in early October for deliveries to the main consumer regions remain strong enough. The sales figures are expected to continue following a similar pattern through the end of the year.

Traditionally, the price of steel declines during the cold season, and market demand is likely to be partially offset by the high cost of raw materials and consumables for production in the factories. However, there are still prospects for price reductions in the first months of 2018.