FLAT PRODUCT PRICES OUTPACE LONGS

Since the end of November, MBR’s global steel price index has risen by 8.5%. However this masks an ongoing divergence in the price performance of global flat and long products prices; a trend that occurred consistently throughout 2016.

. As the chart shows, longs and flats indices began the year almost at parity in January 2016, but diverged rapidly. The widening gap is unprecedented as the chart shows, and MBR believes that this is partly due to demand developments (see Ask the Analyst) but also price supportive protectionism in key supplying markets such as the USA and EU, which has allowed flat-products prices to inflate more rapidly than less protected long...

Published

Alistair Ramsay

January 02, 2017

00:00 GMT