MEPS just published its steel forecast reports to 2017. One report is available for each region of the world (European Union, North America and Asia) and the last one is a world average. MEPS expects a recovery in global steel price over the next three years.
With 2013 being the low point in the steel cycle and despite a number of difficulties to overcome, consumption should begin to pick up in 2014 as the economic climate improves.
The continued economic recovery across the world should help to boost demand for both steel goods and finished consumer products manufactured in Asia over the coming years. This is likely to reduce oversupply and support further advances in steel selling figures in 2015 and 2016.
Government spending restrictions in western nations are expected to continue to limit infrastructure and construction activity and concerns are developing over a slowdown in Chinese demand. So buyers across the world are likely to remain cautious about rebuilding inventories. However, MEPS expects some degree of restocking next year. Consequently, the average steel price in 2014 is forecast to be above the year earlier figure.
The reports can be ordered from the MEPS website.