European steel suppliers are expected to raise their prices substantially in the months ahead as demand returns in earnest to the global market for the metal.

MEPS (formerly Management Engineering & Production Services) forecasts global and regional steel prices based on real-world data from the 11 largest producing countries, which they say encompasses at least three quarters of the world’s most popular rolled steel products.

They concede that the past few years have seen subdued demand, due to global economic conditions – and this has been reflected in falling prices, which hit their lowest point earlier in 2013.

From a level of around $680 per metric ton – equivalent to around £420 at present-day exchange rates – steel has now reached an average of over $700, and is expected to continue to climb.

This price growth is particularly expected to take place within the European Union, meaning it could be wise to buy from European steel suppliers sooner, rather than later.

MEPS predicts prices to peak at around $750 per metric ton by the middle of 2014, before fluctuating around that price in the second half of the year.