November 2011 | Steel Tracker
How far will hot rolled coil prices fall?
The economic issues in Europe have caused volatility in steel markets. The last time that volatility was this apparent in the markets was in 2008/9, so are we to draw similar comparisons? Steel prices are already in a downward trend, but how far will they fall?
The steel industry has witnessed dramatic falls in prices throughout 2011. Mills have been forced to watch, helplessly, as profit margins are eroded by buyers, opting patiently to sit out of the market and raw material prices increased.
The volatility in the steel markets is directly attributable to the financial chaos that is sweeping its way through Europe and the USA. End-user demand is slowing, which has finally rippled through the production chain to steel mills. However, mills are also getting pressed from the other side of the chain. Higher raw material prices have been continuously citied by the mills as the reason for...
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