Steel prices: Different Beats

MAARSSEN, Netherlands (June 4) – While the Vietnamese steel industry is already complaining about over-production, largely due to less demand from China, the President of the German steel-recycling trade organisation Jürgen Karle expresses a different vision. In his view, steel prices will remain high for at least the coming year. Main reason for this opinion is his observation that the per-capita use of steel in China is 150 kilo – less than half of the amount in Germany…which gives reason to assume that China is still on an overtake-course. On the other hand, the price of scrap-metal is already moving – from a whopping € 200 per ton in March of this year to some € 120 at present. This brings the price back to the average level of 2003. This might indicate the same movement as observed in Vietnam. Scrap metal is becoming increasingly important as a source for steel production – already 42% of the world wide steel production is dependent on scrap-metal.(MH)