There has been very little movement in strip mill product prices since July. However, demand over the holiday period has been slower than normal for the time of year because of the current poor economic climate. This has caused growing concern over the trend for the final quarter. Most companies have sufficient inventories for the near-term and are in no rush to conclude new business. The mills are likely to reduce capacity rather than chase orders by lowering prices, particularly before the annual auto contracts are settled. So far, there is no evidence of severe downward pressure from third country imports. Despite price reductions by Chinese exporters, many European buyers have not been tempted to place business because they suspect further discounts will be offered.
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