For traders: rising prices and bigger backlogs throw out the welcome mat

Global steel consumption is heading toward an all-time record, although most of the growth is taking place in China and several developing countries. Sharply rising trade with Asia has boosted freight costs and hence delivered prices for steel and key raw materials, such as iron ore and scrap, and most experts do not foresee a reversal of this trend in the near future. US steel consumption barely moved up in 2003; domestic shipments and exports saw sizable increases, but imports fell sharply. If recent signs of US economic recovery forebode the trend for 2004, the demand for steel should emerge from the doldrums. US steel consumption is expected to rise by ~4 million tons in 2004.