After the drastic price increase in the world market, in the first quarter of 2006, the prices were a bit slugish in the month of July. Studies shows that the prices will go down furthur in the month of August.
Moreover the longterm forecast of steel prices are not very much enthusiastic.
Metal Expert(Research Group) forecasts long term prices (2008-2009) for commodity Grade HRC at anything between $320-$350 per tonne FOB CIS.(www.metalexpert-group.com)
These high fluctuations in the steel sector , has made very difficult on the part of Traders or Re-rollers to get into any long term commitment.