Reuters reported that Asia''s steel firms are bracing for a tough second quarter with even higher pressure on profit margins as input costs are set to jump 30% to 50% on tepid demand. Last month''s devastating quake will also take a heavy toll on Japanese mills.
Hopes for a recovery in the market have also been dashed by China, the world''s biggest producer, which has raised interest rates four times since October to counter inflation and ramped up production to record levels.
A weaker than expected market forced many Asian mills to put off price hikes to account for last year''s rise in input costs in the first quarter, leading them to report lower profit for January to March 2011 period.
( Source: www.steelguru.com )