The rapid rise in European steel prices slowed in late April and early May, owing to Russia's invasion of Ukraine. As a result of the initial panic buying, stocks were depleted throughout the supply chain. Following that, demand slowed, and several other factors added to market uncertainty.
The war in Ukraine is still going on, and there are few signs that it will end soon. Many of the region's supply routes are still blocked or subject to sanctions. Steel rerollers in Europe, on the other hand, have been successful in obtaining alternative feedstock, allowing them to resume normal operations.
Steel production was disrupted by major Chinese lockdowns as part of the country's zero-Covid strategy. Raw material prices were pushed lower as a result of this. The gap between international steel prices and domestic steel prices in the EU has widened. Import deals have become very appealing, at least for the lower grades.
As domestic Covid-related restrictions are lifted, Chinese steel production and demand are expected to improve. However, an influx of diverted Russian material has had an impact on this market. This could lead to an increase in Chinese export volumes, putting downward pressure on international prices.
Steelmakers around the world expect high energy prices to last for a long time. They also continue to invest in new, environmentally friendly technologies. Steel prices will continue to rise as a result of this.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.