According to UK bank HSBC analyst Mr. Jonathan Brandit that there are justifiable reasons to increase the country's domestic steel prices including low steel inventories and domestic prices compared to the international steel prices and increasing raw material costs.
Other possible factors that may affect the hike are the expected weakness in global steel prices, the inflationary and minimal demand growth in 2013.
Added that steel demand outlook may seem better in 2013 based on the HSBC Economics team's forecast of 3% GDP growth but is facing jeopardy over the uncertainty of energy supply due to the lack of rainfall.
HSBC believes that global steel prices are likely to peak in the first quarter of this year if they follow the same pattern of the last 3 years but will probably decline steadily throughout the rest of the year, making local producers to retract the price increase or face increasing imports.
Source:
http://www.yieh.com/2.2.01.01stainlesssteelnews.aspx?no=62797&division=A6
