The outlook for the market has turned bleak because major markets such as the US, Asia, and Europe are not performing well enough. For example, the US steel market is limited by high inflation, low consumption and high interest rates, while high energy prices and low steel demand are limiting Europe.
In addition, Europe and the US cannot absorb excess production in Asia, which creates an excess supply in Asia. High inflation in the US market led to lower demand, further impacted by high interest rates.
In addition to high inflation and low demand, the European market is also facing energy shortages. Sanctions on Russia have forced EU countries to pay a heavy price for Russia's plan to cut off natural gas supplies, and the final supply still exceeds demand. Thus, European steel prices continue to fall.
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Azovpromstal® 25 September 2022 г. 13:53 |
