International Raw Material Prices: A Risk for the Recovery of the World Economy?

Steel prices reached a preliminary peak at the end of 2004.

After a decline in the first half of 2005, they presently begin to rise again, due to higher prices for iron ore and steel scrap.
The prices for aluminium and copper are also going up, as well as energy prices.
As a result of the high level of raw material prices we expect a slightly lower growth of the world economy, but not a dramatic decline.
In industrial sectors with high raw material input corporate earnings will decrease.

Download: Read complete study of the IKB Deutsche Industriebank AG, November 2005 as PDF.