Global steel price drops to lowest level in over a decade

 
Sarah Spickernell
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Demand has dropped relative to supply (Source: Getty)
It's been a bad month all round for commodities, and steel is the latest metal to show the scars of economic turmoil.
The overall price of the commodity dropped to its lowest level in 11 and a half years in September, according to the MEPS steel price index.
Markets suffered from an oversupply relative to demand, the steel sector consultancy firm said in its latest report:
Steel markets around the world are oversupplied relative to current demand. This, along with cheap raw materials, has resulted in the September steel price collapsing to its lowest level since February 2004.
In the US, it said domestic steelmakers are facing pressure from imports from other markets, which has been intensified by the strength of the US dollar. Next door in Canada, market conditions are “soft”, particularly in energy and mining.
But dropping demand in China, the world's biggest consumer of steel exports, has had the biggest impact of all:
The Chinese economy continues to slow, with a consequent impact on steel consuming industries. Oversupply continues to lead to a negative price tendency in the domestic market.

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