The real estate market to pick up signs as well as China's domestic infrastructure investment increase has brought a glimmer of hope to the people, that the steel market is moving toward recovery. At the same time, market participants said, struggling steel market soonest to recovery in 2013.
After a long period of price weakness, steel prices continue to fall. During weak prices, steel prices have fallen below the cost of production of many steel producers.
Salzgitter (Salzgitter), Germany's second-largest steelmaker, said earlier this month, the financial crisis has reduced demand for construction and manufacturing traditional buyers, in addition, the uncertainty caused by the euro zone sovereign debt crisis and customers do not want to place an order.
Last month, Arcelor Mittal (ArcelorMittal) of the growth in global steel demand is expected down to from 3.5 to 4 percent of its previous forecast of 4 to 4.5 percent.
Traders Ronly Holdings, research analyst at Saba (Denny Sabah), said that the steel market is in dire straits. European summer slowdown in demand is usually rebound in September, but the situation did not appear last year, it seems this year is unlikely to occur. European steel production capacity surplus serious, even if the iron and steel enterprises to achieve profitability, and its profit margin is also minimal.
The price of steel information provider Steel Index (Steel Index) revealed, and Nordic hot-rolled coil prices fell about 8% in the past six months, to 503 euros per tonne (about $ 623). Hot-rolled coil have a variety of industrial applications, including automobile manufacturing, shipbuilding and energy pipeline used steel pipe.
Nordic rebar prices in the past six months fell 8%, to 510 euros per ton. Rebar is widely used in the construction industry.
In the current, a is usually regarded as the period of the construction industry steel demand, large and medium-sized iron and steel manufacturers began to cut prices the commodities trader Sucden Financial broker (Rob Montefusco). Overall, therefore, this is not a good sign. The steel will be used for the production of ordinary people to buy those products. Unless you are able to lower the unemployment rate, allow people to start spending again, otherwise this downturn in the market you want to improve the look can be described as out of reach (particularly in Europe). The next few years is likely downturn in demand.
Some of the iron and steel manufacturing enterprise, due to a serious shortage of funds, some steel mills have been cut and slashed prices, but the demand is not yet apparent rebound. China may be the only hope.
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