Steel companies have little choice except to curb output as
weakening economic growth and demand for their products prevents them from
passing on surging raw- material costs to customers.
The price of European hot-rolled coil, a benchmark steel
product used in cars and buildings, has fallen, while the cost of iron-ore used
to make the metal gains.
ArcelorMittal, the world's largest steelmaker, said
yesterday it would temporarily close a blast furnace in Eisenhuttenstadt, Germany “until
the demand situation supports a re-start.”
Input costs have more than doubled since 2005, with an almost
threefold jump in iron ore and coking coal fees. Steel prices are set for a
second straight quarterly drop and down by 17 percent from a two-year high
touched in February.
Leave a Reply