Steel markets heading lower with negative implications for alloy demand and prices

We attended AMM’s 31st Steel Success Strategies event in New York City last week. Presenters at the event were in agreement that global steel prices are poised to fall in the third quarter, and we concur with these forecasts.

We attended AMM’s 31st Steel Success Strategies event in New York City last week. Presenters at the event were in agreement that global steel prices are poised to fall in the third quarter, and we concur with these forecasts. A downturn in global steel prices will have negative implication for ferro-alloy prices, which is also in line with our forecasts. Another forecast was presented in the opening session of the event indicating that the upcoming decline in global steel prices will prompt Chinese steelmakers to cut production by 100Mt this year. If this in fact occurred, a Chinese production cut of this magnitude would have severe negative implications for ferro-alloys consumption. We estimate a...

Published

Amy Bennett

June 23, 2016

00:00 GMT