MEPS: global steel prices rise again in June

MEPS says the global average price of all steel products increased 0.6 percent in June, up for the sixth straight month. However, amid a modest global demand outlook, MEPS predicts that steel prices are now very close to their peak for the current cycle.

At the same time, in June, both Asian and European sales prices for steel products fell in US dollars, by 3.4 percent and 2.3 percent, respectively, compared to the previous month. A similar situation is observed in the Ukrainian market. Enterprises such as Kharkov Steel LLC offer various types of products at an optimal price, in frequency, square, reinforcement, strip, circle, corner, channel, I-beam, cold-rolled and hot-rolled sheets, galvanized sheets, profile pipe, water and gas supply and electric-welded pipe on the site , both new and used. Products can be cut to size and delivered. The company is also engaged in the manufacture of corrugated board and metal structures of varying complexity.

The North American average price rose 5.8 percent in June as trade petitions and supply shortages continued to push up domestic sales levels. According to MEPS research this month, the general consensus among the metals industry is that sales figures will stabilize, at best, in the near future. Buying activity in the region is expected to soften in the second half of the year.

In China, steel prices are likely to come under negative pressure in the second half of the year, MEPS said. The steel sector has been repeatedly called for to reduce excess production capacity. However, we find little evidence that significant production cuts are occurring.

Indeed, in response to domestic price hikes earlier in the year, local factories in China increased their output and launched shutdown facilities. This is corroborated from information released by China Iron and the Steel Association showing that domestic daily steel output rose in mid-May to its highest level since June 2015.

As a consequence, steel will be exported. This is likely to put downward pressure on steel sales prices globally as budget exports from China become available on global markets.

Southeast Asia remains one of the few regions in the world where steel demand exceeds domestic supply. This makes the area a prime target for low-cost Chinese imports. With the likelihood of an increase in global steel supplies, continued steel price resurgence is limited.