Global steel price may rise 11.5% by mid 2012: MEPS

LONDON (Scrap Monster): MEPS predicts that its World composite steel price will rise by approximately 11.5 % by mid 2012. The most significant gains are anticipated in the flat products segment as prices rally after the substantial reductions in the second half of last year. As outlined in the January edition of the International Steel Review, the improvement in the long products markets will be less dramatic.

According to MEPS, the steel price revival was led by the changing market situation in North America as scrap prices surged at the end of 2011. The prospect of higher raw material costs also pushed up steel selling values recently in Asia and Europe.

Transaction figures are, however, expected to soften between July and December. The anticipated inventory building, resulting from the rising prices, should come to an end in that period. MEPS predicted the price reduction during the second half of 2011 and the subsequent upturn in early 2012.