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Steel prices will stabilize at a high level in 2005

Duesseldorf, Germany. Steel prices will stabilize at a high level during 2005, following more than a year of turbulence. That's the warning from Andreas Moehlenkamp, chief managing director at the German steel and metalworking industry association (WSM).

Recent agreements on prices between steel manufacturers and automakers are not sufficient to provide industry stability, says the WSM.

"In 2004, I had the feeling that the rift was growing. This must be reversed now," says Moehlenkamp. He adds that the automotive industry must accept that the old steel pricing structure has changed.

Moehlenkamp says that WSM wants an early warning system to prevent drastic price increases for steel, causing big problems for the industry. The participation of the automotive industry would be vital to the scheme's success, says Moehlenkamp.

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