15 Jul 2010 12:15

Demand for steel to begin recovery in September - Rashnikov

YEKATERINBURG. July 15 (Interfax) - Demand for steel will begin to recover from the decline seen in recent months in September, Magnitogorsk Iron & Steel Works (MMK) board chairman and chief beneficiary Viktor Rashnikov said.

"I believe it will recover beginning in September," Rashnikov said, noting that there had been some decline in steel exports in the last two months.

It was reported earlier that prices on steel slab and hot-rolled coil fell 20% at the end of June compared with mid-April and prices on cold-rolled coil were down 10%. As of mid-June export prices on square billets were also lower. The price level was not satisfactory either for suppliers, since it was below cost, or for consumers, who found that prices for manufactures were also below cost, Brok-Invest-Servis said in a survey. As a result, very few deals were transacted, it said.