Mr Nasser VP of Eurometal expects further prices fall in 2009 before the recovery of the market. He said that steel stock in Europe is likely to remain high in January 2009 as the major customers do not work in this period.
Mediterranean semis price decreased during a day by 0.2% to USD 332.5 per a tonne. For the steel shipped in three months, the price has increased to USD 361.5 per a tonne. The price for Far East semis has not changed at USD 325 for shipment at once and USD 330 for shipment in three months. The market participants expect possible increasing pressure on semis prices if steel scrap shipments difficulties remains. However the situation is rather stable.
At the same time European re bar producers have reported that steel scrap deficit makes them increase prices although the market is rather weak. As a result ex works prices have increased from USD 400 to USD 410 per a tonne to USD 410 to USD 420 per a tonne. However, further prices growth is impossible as there will be no demand at these prices, the manufacturers say. At further scrap prices growth they admit production stop.
LME official prices for Mediterranean steel semis on January 14th 2009 made USD 330 per a tonne for shipment at once and USD 368 for shipment in 3 months. Far East semis price was USD 330 for shipment at once and USD 335 for shipment in 3 months.