August 28, 2008

World steel prices at 28 year high - Macquarie Bank

According to Macquarie Bank, international steel prices have been on the increase for three straight months this year and are posting at highest level since later 1970's and early 1980's.

Macquarie Bank said that the main reasons behind are raw materials cost rise, dollar's depreciation and steelmakers' manipulative purchase before further price hikes, though demand from the construction industries in US and Europe remains slack.

Macquarie Bank statistics show that surging steel prices happen in three major parts of the world:
1. US, as weak dollar and high freights protect its market from shock of imports, adding that its domestic production declines, sees 34% rise in HRC to USD 834 per ton
2. In Europe, HRC gains 29.4% to USD 888 per tonne.
3. China's gains 19.6% to USD 628 per tonne.