Preliminary results of 2013. Price trends, demand forecasts for 2014
On November 11, the 16 International conference “Russian Metal and Steel Market” took place in Moscow. A representative of Metal Expert Consulting has presented a report “Russian Market of Steel Products. Preliminary Results of 2013, Price Trends, Demand Forecasts for 2014”.
The report considered current trends in Russian steel market and forecasts on demand and prices.
We are quite optimistic in our short-term price forecasts for 2014:
- Yes, the world market of ferrous metals has entered a phase of low prices.
- Yes, we expect that worsening global situation will affect adversely Russian exports and the economy in general.
- However, we do not expect a price downfall. Prices are expected to fluctuate close to the current level in 2014 and the annual decrease will not be significant.
We base our conclusions as to steel product prices on quarterly reports on raw material world prices.
Despite an expected slowdown of steel consumption growth in the country and relatively stable prices, Russian market will stay dynamic in 2014: the launch of new capacities and unfavourable export outlooks will toughen competition in Russian market.
We see a great potential for the growth of steel demand in Russian market.
However, Russian producers have fewer opportunities of cutting production costs and they often lose competition in steel product segments.
Underinvested domestic manufacturing of products with high added value is the reason for growing imports.
We see opportunities for successful investments into Russian ferrous metallurgy even amid the growing supply surplus, and we have tried to convey this message to the participants of the conference.
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