Credit Suisse Foresees Near-Term Boost in Steel Prices

The Russia-Ukraine crisis has badly impacted steel exports from the region.

SEATTLE (Scrap Monster): The steel prices in Asian countries are likely to witness notable near-term boost, according to global investment bank and financial services firm Credit Suisse.

Neelkanth Mishra, Managing Director, Co-Head of Asia Pacific Strategy and India Equity Strategist, Credit Suisse stated that it is not certain as to how long the volatility in energy costs will persist. A complete pass-through of energy costs is unlikely, he said.

However, the volatility in energy prices may not be a huge negative from an earnings perspective, Mishra added. Some companies may see their margins hit badly. The dip in volume growth seen during the past several months may aggravate further. Credit Suisse foresees challenge on prices in the near-term.

The Russia-Ukraine crisis has badly impacted steel exports from the region. The war has also led to surge in coking coal and crude oil prices. The rising commodity costs are likely to have big impact on steel market.

Speaking on the sidelines of 25^th Credit Suisse Asian Investment Conference, he noted that any rise in coking coal prices will lead to surge in iron ore prices. The chances of supply disruption are likely to intensify further, as both Russia and Ukraine have been net exporters of steel. The depletion of steel stocks could lead to surge in prices.

YOU MAY ALSO BE INTERESTED IN:

Rising Input Costs and Weak Prices to Hit Domestic Steel Sector Earnings

Fitch Foresees Dip in Global Steel Prices in 2022 on Subdued Chinese Demand

• Copper wire theft on the rise in Tucson
• AISI Welcomes Johann Steiner to AISI Board of Directors
• EU Steel Market Eyes 2026 Recovery on CBAM, Trade Measures
• Canada Clears $53B Anglo American–Teck Merger to Create Copper Giant