American steelmakers expect that they will be facing a reduction in orders and production in 2009.
Analysts forecast that compared to 2008, output this year will shrink by 35 percent, with revenue also down by 35 percent or more; they fear that production output will not revive until 2011.
At the beginning of 2008, the global steel market was strong due to booming demand so that raw material prices soared. In reaction to the credit crisis and economic slowdown, steel prices plummeted in correlation with falling demand of downstream industries such as construction, autos & machinery manufacture.
Recent scrap prices decreased to a low level from its peak at US$500/ton in July. Simultaneously, basic product in US, HR sheet, is being sold at US$785/ton, having fallen from US$1,080/ton in July. Source:Yieh.com