Stable if the increase in prices for steel products in the United States?
Becoming stable early in the year, in March prices for steel products began to increase again. The market agreed with the price increase, which provoked the largest steelmakers States. Company Market Realist have analysed and provided data on this issue. Price six hundred and fifty dollars per ton — the highest price since the autumn of 2014.
Looking at this unexpected revival from the prices for steel products there is a logical doubt. Market participants reflect on the stability and duration of this trend. The dialogue between the head of States Donald trump and the President of China, XI Casingena very important. Meeting at the Mar-a-Lago is decisive in the decisions on this subject.
It is hoped that the steel product market will be a key position in discussions of the two world leaders. In 2016 China’s reforms, the purpose of which was to reduce excess capacity. The question of the effectiveness or ineffectiveness of such reforms is still disputable and open. However, their impact on the growth of steel prices worldwide last year is undeniable. In 2017, the country promised to reduce power even further.
The growth of prices for steel products are heavily influenced by the United States of America. One of the factors were introduced import duties on steel from China. The reason for the appearance last year of fees up to 500% was quite significant. It was found that in China, not quite fair to give subsidies to domestic steel manufacturers. These conditions allow to sell their products in States at very low prices. The local industry is unable to compete with them, which is disadvantageous for the United States.
These two key factors influenced the surge in prices for steel products in the United States. It is very important to understand what role they will play in the future in the market of steel products. Their place is very important for steel prices in the United States in the future. One of the campaign promises trump has been supporting manufacturers of America. After that, his position regarding tactics in China’s market has become quite aggressive. Dumping of steel and multiple production facilities in China should be one of the key topics at the meeting. This will help to understand the tendency toward stability in prices for steel products.