Система Orphus

Average world price of steel production increased by 30 % over five months of 2008

02.07.2008, 14:33 2475

Almaty. July 2. Kazakhstan Today - World market price of steel production has continued to grow. According to Steelguru.com, reference prices for flat rolled metal continue to grow in Europe, though Chinese steel has increased its supply. As a whole, for the first five months of 2008 average world price of steel production has increased by 30 %.

The prices for steel at the London stock exchange of metals (LME) according to three-month future contracts have also increased.

The OECD Steel Committee session, which was recently held in Paris, noted that world market of steel remains stable despite of growing risks in economy. Demand for steel continues to grow due to expansion of needs of industrial and building sectors. World capacities of manufacture of steel increase as well.

Sharp increase of prices of steel from the beginning of 2008, in the opinion of analysts, is connected with sharp rise of metallurgical raw materials price (scrap iron, ore and coking coal). According to Reuters, United States Steel Company forecasts that last increase of prices for iron ore will cause further increase of prices for steel.

The experts of the European analytical companies forecast further increase of demand for steel metal products and increase of their prices in the world. Such conclusions have been made, following the results of the conference held in London European market of metal 2008, organized by Steel Business Briefing Company. According to Director of Trade and International Relations of the European confederation of manufacturers of cast iron and Charles Tacheleta's steel, world consumption of steel in 2008 will increase by 7 % in comparison with the previous year.

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