| Steel suppliers are set to benefit as global demand is | | | | While the growth in demand is good news for steel |
| expected to increase over the next three months, a | | | | suppliers, there is concern about the outlook for |
| market survey by The Steel Index found. | | | | prices. The improvement in demand led a number of |
| While survey respondents also expect prices to be | | | | steelmakers to restart furnaces or increase output, |
| higher over this time, other research firms warn that | | | | creating fears that this might have been too much, |
| increased production by steelmakers may offset the | | | | too soon. |
| expected positive impact of higher demand on prices. | | | | Steel suppliers have been benefiting from steadily |
| ArcelorMittal, the world's largest steelmaker, said | | | | increasing prices since the start of the Northern |
| demand growth in China will be particularly strong. | | | | Hemisphere summer, but drops of about 8% in the |
| However, the US and European markets, which were | | | | past month have been recorded on hot-rolled coil, a |
| hit hard by the economic crisis, are not expected to | | | | benchmark grade, research firm World Steel |
| normalize in 2010. Steel suppliers should focus on | | | | Dynamics said. |
| emerging markets and China will represent nearly | | | | The quick return to falling prices is proof of the |
| 80% of the global market this year, according to | | | | vulnerability of the global economic recovery, analysts |
| ArcelorMittal. | | | | warn, and steel suppliers should tread with caution. |
| While world steel demand dropped by almost 2% in | | | | As steel demand is closely linked to a variety of end |
| 2008 and is expected to continue declining this year, | | | | markets, ranging from consumers (e.g. vehicles, white |
| leaving a number of steel suppliers in financial | | | | goods) to industrial users (e.g. construction, |
| difficulty, ArcelorMittal expects a return to growth | | | | machinery), demand and prices are expected to |
| rates of 3 to 5% next year, driven mainly by | | | | remain volatile for the near future and will remain so |
| emerging markets. | | | | until the global economic outlook is more certain. |