Flat steel product prices drop in EU, US ; Dec steel imports decline in US

摘要

Even as the flat product steel prices continue to drop in the EU and the US , the Chinese market has experienced some sharp price rises. At the same time steel imports in the US have dropped in December .The US flat steel product market is slow._Service centre inventories are unlikely to be fully adjusted until the end of the first quarter at the earliest. Transaction prices for a number of products continue to slide. High levels of imports, ordered earlier in the year, have contributed to the oversupply, despite strict production discipline by the major steelmakers. However, new offers of foreign steel now look less attractive. We have noted a marginal transaction price recovery over the last four weeks in Canada and more may be on the way. The mills are seeing some improvement in demand as service centres start to replenish inventories. Import volumes are down and so is domestic production. Distributors report that resale business is fairly quiet after the holidays. The Chinese market has witnessed some sharp price hikes at the start of 2007. The momentum of industrial production continues to be good and investment remains relatively high. Booming export business continues apace. However, the approach of the Lunar New Year holidays in February may cause steel demand to decline, albeit temporarily.