Steel prices stopped falling down

MAG
opublikowano: 2008-10-28 09:54

Warsaw (Puls Biznesu) – Closing steel plants brings effects. Prices are falling. Producers must be cautious, however. Otherwise, Poland will be flooded with steel imports.

After several months of drastic dive of steel prices, the trend has stopped and reversed. There are several reasons for this.

“Demand for steel is relatively good. Many deliverers have full portfolio of orders”, Jerzy Bernhard, Stalprofil deputy CEO said.

“Home building projects started in recent months are being continued. Infrastructural projects are being launched where a lot of steel is used”, Grzegorz Dolkowski, Drozapol Profil deputy CEO added.

He expects that prices may grow later this year.

“Euro and dollar exchange rates against zloty have grown. This limits imports and chances are bigger to sell Polish steel products and stop prices falling. If the zloty will appreciate again, however, imports may grow”, Robert Wojdyna, the CEO of Konsrcjum Stali said.

There is one more reason for higher prices: the fact that many international companies have closed their plants.

“What the producers did was rationale but they must remember not to cut production too much because several countries, including China, are producing too much steel. If prices jump, imports may grow”, Andzej Ciepiela, the director of the Polish Union of Steel Distributors said.