As the demand for steel is still low, a number of European steel producers have chosen to reduce production by turning off blast furnaces over the summer.
Steel consumption has decreased as a result of lower car production rates brought on by a shortage of parts. There have also been reports of decreased steel demand from other end users, notably those in the white goods sector.
In an effort to balance supply and decreased demand, the bulk of European coil makers have been operating at lower capacity and have scheduled extended summer maintenance work.
European distributors don't need to refill because they have enough inventory on hand. The EU flat steel market's downward pricing trend encouraged buyers to take a wait-and-see attitude.
With production potentially rising if and when restocking begins, output reduction should sustain price stability in the short term.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.