World steel prices fell by 5%

According to the studies of the British advisory company Meps International LTD, the world prices for steel in June fell by 5.1% and will probably continue to decline until the end of the year, while the III quarter is expected to oversleep the market for steel products.

The consolidated global price index of steel products of the agency fell in June to $ 757 from $ 798 per t in May.

Asian Subindex Meps lost 3.6%in June compared to April, decreasing from $ 728 per t to $ 702 per t. In the European Union, the price of steel decreased by a month by 0.8%, to € 637 per t, and in dollar terms fell by 4.7%, to $ 779 per t.

In the countries of North America, the average price for steel products decreased by 6.7% compared to May, to $ 791 per t.

“In the II quarter, steel plants were able to transfer the price of raw materials to the consumer, but the market is now weakening,” said Kay Ayub, a steel analyst at Meps. “Prices will still fall.” According to the analyst, a serious replenishment of stocks, which was an important price driver in early 2010, will probably not appear again until the end of the year. However, according to its forecasts, the reduction in production of steel factories should help to restrain the decline in prices, although the production growth will still develop at a faster pace than demand.