Global steel prices to drop in 2010
World demand, output will be weak until 2011
Tom Stundza -- Purchasing, 11/2/2009 10:37:07 AM
Two analysts, one from the U.S. and the other from Germany, see reduced world steel demand and lower prices through next year. Their views would contradict a recent World Steel Association forecast that world steel demand will grow 9.2% in_2010 after falling by an estimated 8.6% in 2009.
Speaking at the Latin American Iron & Steel Institute meeting in Quito, Ecuador, Peter Marcus, managing partner at World Steel Dynamics, suggests that steel consumption will be at lower levels during the next few years and there will be reduced international steel prices during 2010.
The online news service Steel Business Briefing says Joachim Schröder, president of Research & Consulting Group, also sees "a softening period" for steel pricing-possibly as far out as 2011-and believes global mills won't see full demand recovery until 2012.
The online news story quotes Marcus as saying Russia, India and Brazil will be the only countries to maintain recent levels of steel output, with no substantial growth in the U.S. until 2011 and in China until 2012.
Meanwhile, Cláudio Alves, director of Brazilian mining company Vale, tells the conference that U.S. steel demand might post some positive signs in 2011, but European and Japanese mills might not see recovery signs until 2012.
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