Prices expected to fall in 2007 from highs in 2006

摘要

World crude steel production is forecast to increase by 83 million tonnes to 1.21 billion tonnes in 2006 and by 68 million tonnes to 1.28 billion tonnes in 2007. Slow to moderate growth in the traditional steel production centres of Japan, the Republic of Korea, Chinese Taipei, the European Union and the United States is expected to be buoyed by strong growth in the steel sectors of developing nations in 2006. Increased steel production in China, India, Brazil, Mexico and the Russian Federation will be predominantly sourced from blast furnaces, hence maintaining robust demand for iron ore and metallurgical coal. Strong demand to maintain steel prices into 2007 Strong economic growth in China and India, other developing Asian economies and north America is expected to hold steel prices steady until late in 2006. Despite strong growth in steel demand in developing nations, increased supply will contribute to forecast marginal price reductions across most steel products in 2007.