FOCUS: Asia braces for possible sharp price corrections amid historical highs, rumored contract cancellations

Market participants in Asia are bracing for sharp price corrections amid historically high prices for steel, iron ore and ferrous scrap in the region, industry sources told Fastmarkets this week.

The price increases since early October have stunned market watchers with their speed and magnitude, leading many market veterans to compare it to a similar price climb in 2008 - and the precipitous drop that followed it
"I was selling billet at $1,100 per tonne cfr SE Asia one month and then in the following month I was selling billet at $300 per tonne cfr SE Asia [in that year]," a trader in southeast Asia told Fastmarkets on Monday December 21.
"The higher prices go [this year], the more painful will be the correction," he added.

One possible sign of a potential correction is market speculation about contract cancellations and non-fulfilment of contracts by sellers, industry sources...

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