Balli Steel Reports Global Steel Market Experiencing Sharp Rises Since Chinese New Year
on: May 17, 2010, 2:58 pm
Author: Balli Steel
Balli Steel, one of the world's largest privately owned
independent commodity traders, highlights that steel markets across the
globe have experienced sharp price rises since mid- February 2010. The
first six weeks of the year had seen a flat market with the majority of
commentators believing that prices would most likely fall back to
November 2009 levels, however conversely, prices started to rise
sharply coinciding with Chinese New Year (14th February).
Balli Steel reports that the price
has largely been driven upwards by restrictions in the availability of raw materials
and by steel mills maintaining a tighter control over supply. Balli Steel
anticipates that prices are likely to continue to rise in the short term, however,
there is the possibility that the market may start to show signs of fatigue in the
third quarter, especially if the steel mills fail to retain supply restrictions.
Balli Steel reports that prices have risen by approximately US $200 per tonne since
the start of the year regardless of their base level, equating to increases of
Nasser Alaghband, CEO of Balli Steel commented: "Contrary to the views of most
commentators at the beginning of the year, we have seen a strong rally in steel
prices over the past six weeks, albeit based on relatively thin trading volumes. We
anticipate that prices are likely to grow more conservatively over the rest of the
year, although prices may come under pressure in the third and fourth quarters if
steel mills decide to increase production."
Although steel prices have risen across the board, there remain significant regional
market variations. The Chinese market remains key, accounting for significant global
demand and over 50% of worldwide production, however despite surpluses, China has
not been an aggressive exporter. Elsewhere in the Asian market, demand from India
has also remained very strong with significant imports made in the first quarter of
The picture in the Middle East market remains far less clear cut. Demand remains
very low in parts of the UAE, which are still feeling the effects of the global
downturn and Dubai's credit crisis, however oil rich states such as Abu Dhabi and
Saudi Arabia are pushing forward with extensive inward investment programmes, which
generate significant steel demand.
Prices in the European markets have kept pace with the global increases, however,
demand in the region remains particularly low. Government expenditure has been cut
in many countries which will have a significant impact on infrastructure projects.
The steel industry of the PIIGS
nations of Portugal, Ireland, Italy, Greece and Spain have been particularly hard
Notes for Editors:
About Balli Holdings:
Balli Holdings is a large private, multi-national corporation, headquartered in
London, with offices in Dubai and other key business hubs around the world.
Balli was established in 1982 and operates a number of affiliated companies
specialising as commodity traders
alongside industrial, real estate and private equity operations in over 20
countries. Together with its affiliated companies, Balli group employs over 2,000 people worldwide.
Balli Steel is the company's principal operating subsidiary, and is one of the
largest independent steel trading
companies in the world. Balli Steel provides raw materials and steel to a number of
market segments including steel mills, steel service centres, pipe and tube makers,
the oil and gas industry and other designated end-user segments such as the
packaging products industry.
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