Steel Industry Update

Prices are steadily firming while sentiment among traders is mixed. Some believe prices will come down in the near term, due to overstocking and as China resumes exports in response to softer prices in the domestic market. Others expect the current positive trend to continue after Ramadan ends, due to final orders for year-end delivery. Prices have been aggressively up recently (up 29% in 7 months), so when China starts to export its surpluses, CIS producers will come under price pressure. Chinese producers are expected to use lower prices to gain market share in Asia (the major exporting region for both Chinese and CIS producers).