Mills have been able to push for higher prices again this month on the back of increasing raw material prices. These increases appear to be justified at present, and will largely be accepted by the market. The danger persists, however, that when raw material prices start to come down, likely towards the end of the second quarter, that finished product prices with them. This is especially true given that increased production over the last few months has seen market supply rise perceptibly. Moreover, the strengthening of the dollar against the euro and relatively high prices in the domestic market could see the return of import competition.
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