Reasons for price growth in the world market and prospects for their correction /the long product market/ Alexander Markov Chief Analyst Metal Expert CIS Steel in the World Markets April 2007, Kiev, Ukraine
Growth factors Supply decrease: China: uncertainty as to export taxes Russia: scrap exports decrease – fundamental change Brazil: seasonal cut in pig iron production EU: seasonal cutback in steel output USA: lingering low utilization of production capacities Other market factors set up by sellers Demand increase: Relatively mild winter Inertia of the growing market Inflation Growing prices in the real estate market SUPPLYDEMAND< Average world prices, fobJan 06Apr 07changeJul 08 Steel scrap times Square billet times
Growth factors China: Net export of steel products and semi-finished products
Growth factors Russia: Scrap collection and distribution
Growth factors Brazil: Pig iron production
Growth factors EU-15: Average daily steel production
Growth factors US: raw steel production
Real estate prices USA and Russia: price dynamics in comparison USA: Median Price of Houses Sold including Land Price
Steel prices Steel scrapBillet
Steel prices Steel scrapBillet
Thank you for your attention CIS Steel in the World Markets April 2007, Kiev, Ukraine