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North American steel prices to decline in 1Q06

Friday, December 23, 2005 10:25:25 AM ET
Morgan Stanley

NEW YORK, December 23 (newratings.com) – Analysts at Morgan Stanley believe that steel prices would decline in North America during mid-to-late 1Q06, since imports are expected to increase.

In a research note published this morning, the analysts mention that the North American steel sector’s fundamentals are healthy at present, with low inventory, disciplined production, healthy backlogs and firm pricing. Morgan Stanley expects imports in North America, however, to increase, given the wide gap between the steel prices in North America and rest of the world.