MEPS (International) LTD recently commented on average January prices for North American carbon steel. In the flat products category, January hot strip prices fell marginally in line with MEPS’ expectations. Plate figures, in contrast, drifted downwards despite strong domestic market conditions. Falling scrap surcharges more than offset basis price hikes gained by the local mills. According to MEPS, cold rolled and hot dip galvanized values fell in January as inventories rose due to a fall in demand from auto producers. Surprisingly, electro-zinc coated sheet figures held up.

High inventories continue to plague the strip mill segment, where further small decreases are anticipated next month for all products. Further modest price reductions are still forecast over the next twelve months. Weak currencies should mitigate against a substantial rise in imports in the short term.

Hot rolled plate values should continue at or near current levels into the Summer months before falling marginally as supply becomes easier.

In the long products segment, prices of wire rod in mesh grades faltered in January due to an increase in foreign competition. MEPS expects further slippage over the next few months before prices turn up marginally in the summer. January price decreases for rebar and merchant bars were more substantial than anticipated, and further small decreases are predicted. Forecasts for the full year have changed little, with this month's prices for sections close to previous estimates. MEPS has upgraded its forecast in this issue due to probable improvement in demand later in the year.

Source: MEPS - MEPS Steel Prices On-Line