Thursday, September 29, 2016

MEPS - North American Steel Price Recovery is Brought to a Halt

Fed will interpret as "dove-ish!".

The recent North American steel price recovery has proved short-lived as regional values continued their downward trajectory, this month. 
The sustainability of the recent price rises, in the US, hinged upon supply-side considerations. The introduction of import barriers on a number of flat products initially supported the domestic producers. 
However, steel imports, into the US, are steadily rising, month-by-month, from countries not covered by the trade cases. The restrictions are unlikely to be strong enough to reverse the negative price tendency that exists currently.

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