Steel prices have risen significantly in recent weeks as producers look to pass on their actual and anticipated higher costs of raw materials,a  report said.

Prices are up by $20-$40 per tonne in the last week, and in some cases by up to $60-$70 per tonne from February, said Steel Business Briefing (SBB). 

Demand is currently strong in India and China, and price increases there should stick in the coming months. However, Beijing may take further cooling measures later this year and that would affect Chinese construction, which is closely correlated with Chinese steel consumption, the report said.

Some buyers and traders are already talking about a possible finished price collapse, given the relative fragility of demand.

However, Roger Manser, managing editor of SBB,  said: “A price collapse is probably wishful thinking by buyers, though financing is still tight in places and there is significant overcapacity in the market. In the second half of this year, prices may wobble, but they are unlikely to dive steeply.”

In North America, there has been restocking. Sheet is at around $706-$750 per tonne), but locals are sceptical about the sustainability of the increases in the medium term. They fear plans to bring back on line idled capacity may flood the market with supply, outstripping demand. - TradeArabia News Service