Tuesday, April 19,
According to the data of World Steel Association, global crude steel production has hit new records in the month of February. But steel demand did not grow at a similar pace and as a result the imbalance has pulled down prices.*
European traders quoted offers for domestic hot-rolled-coil (HRC), the most widely produced flat steel product, used in manufacturing and the automotive industry, at 570-580 euros per tonne ex-works (EXW) Southern Europe and 595-605 euros EXW Northern Europe, both about 20 euros down from two weeks ago.
“Sales were very few and volumes were thin. We are either at, or close to, the bottom of the pricing but personally I think that prices won’t go up substantially,” a steel trader based in Europe said.
“There is fundamentally an oversupply situation for the next four months. Buyers will come back to the market but not enough to make prices rise,” the trader said, adding that steel raw materials prices would set a floor on prices.
Some, however, think prices may fall even further if raw materials prices slip and due to pressure from slow demand.
Source: Bloomberg
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