All MEPS flat products forecasts have been revised upwards as a result of the staggering 200 percent price rise in coking coal contracts. Scrap figures also rocketed during April. Growing imports for most products will not be sufficient to relieve the tight supply situation in the market in the short term. Consequently, transaction values are expected to climb until the middle of the year. However, ordering is likely to be kept to a minimum as credit constraints restrict the volume of material customers are able to purchase. Buyers are also currently unwilling to speculate at such high prices. This could limit the size of the increases achieved by the mills over the coming months. The MEPS – Hot Rolled Coil transaction price is, therefore, predicted to reach $US975 per tonne by the end of the second quarter.
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