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steel prices
My theory is that we are headed to a recession. The cooling of energy prices is typical of what happens after a market top. Another typical indicator of an impending recession is the cooling of commodity prices. Note what is happening in steel prices:
Neil Buxton, MD of GFMS Metals Consulting, feels that there would
be some weakness in the steel prices going forward. The downside can
be 16-20% from the current levels.
Meanwhile, Klaus Kreutzer, Project Manager of Consline, says that
steel prices may cool down by 10-15% but there will not be more of a
decline.
Excerpts from CNBC-TV18's exclusive interview with Buxton and
Kreutzer:
On the expected slide in steel prices this year.
Buxton: We have been seeing some bearishness for some time and
probably this caused steel prices to correct. The weakness in the
market is from the demand side rather than the increased supply. The
bulk of that weakness in demand is in Western Europe and also in
North America. (end quote)
10-20% correction due to a slackening of demand in North America and Europe. The market looks ahead. Although we had a great reporting season, stock prices have been falling because many investors are pulling their money out of the market. I think that is because they are looking ahead to a slow down of the economy.
My theory is that we are headed to a recession. The cooling of energy prices is typical of what happens after a market top. Another typical indicator of an impending recession is the cooling of commodity prices. Note what is happening in steel prices:
Neil Buxton, MD of GFMS Metals Consulting, feels that there would
be some weakness in the steel prices going forward. The downside can
be 16-20% from the current levels.
Meanwhile, Klaus Kreutzer, Project Manager of Consline, says that
steel prices may cool down by 10-15% but there will not be more of a
decline.
Excerpts from CNBC-TV18's exclusive interview with Buxton and
Kreutzer:
On the expected slide in steel prices this year.
Buxton: We have been seeing some bearishness for some time and
probably this caused steel prices to correct. The weakness in the
market is from the demand side rather than the increased supply. The
bulk of that weakness in demand is in Western Europe and also in
North America. (end quote)
10-20% correction due to a slackening of demand in North America and Europe. The market looks ahead. Although we had a great reporting season, stock prices have been falling because many investors are pulling their money out of the market. I think that is because they are looking ahead to a slow down of the economy.
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