The Basis Of Changes In The Second Half Of The Global Steel Supply And Demand Greater Pressure

Because of concerns about the international financial turmoil and by the first correction

of the Chinese market, the international steel market sentiment deteriorated steel supply base is changing. Prices of raw materials supported by this round of global steel market rally will end, even though three quarters of ore suppliers still plans to raise prices.

Europe: weakening of the global steel market and the debt crisis in Europe, the next few months, the European steel prices may fall, the current European steel prices are still higher than other parts of the world. The second half of the European steel demand will be reduced to the narrow end of the year steel mill profits.

The first half of this year, steel demand in Europe is better. Dealers benefit from the positive to add inventory and actual demand becomes better, rebounded steel demand, steel positive expansion, started back to the 80% rate, steel profits improved significantly. As the euro, such as Arcelor Mittal Steel Europe plans price increase in Q3 material flat 200-250 euros / ton. But Europe's replenishment can not be sustained, the actual demand has not significantly improved. In addition to the automotive industry in Europe needs of the market can still, there is no real demand, especially in summer almost. European steel production is expected to be three-quarter seasonal decline, the fear of the market slump, a number of steel production continues to enlarge fear will lead to steel price continue to fall. ArcelorMittal has recently planned closure of three quarters of Europe 3 blast furnace. British consulting firm MEPS also expected, the European steel prices will peak next month, after the market tends to decline.

The United States: With the increase in supply, weaker U.S. steel supply and demand balance, supply and demand will not support further increases in market prices, the steel city with high drop. While some service centers in April is still appropriate procurement, the automotive sector still continued demand growth, demand for the energy sector at a reasonable level, domestic appliances tend to rise, but the apparent steel demand growth tends to narrow. Into May, or signs of stable and active market, it is clear that demand less than supply growth, increased market concerns about increasing supply. The main impact of market decline or increase in supply, 5 at the end of the domestic steel capacity utilization close to 74%, while last year only 43% capacity utilization. American Iron and Steel Institute data shows that U.S. crude steel production continued to increase, production continued recovery. Assembly production in January was 64.5%, 68.2% in February, March was 70.8%, 72.0% in April. Currently, buyers wait and see mood, when buyers return to purchase will depend on inventory levels, inventory is to determine the buyer in the market, sit down and how long the main factor. Central U.S. stocks rose for five consecutive months, four at the end of the United States metal service centers to reach 6.7 million tons of steel stocks, growth of 3.2%. Thus see that the buyer may take longer return to the market.

by: Frbiz

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