Sluggish global steel demand puts pressure on iron ore and coal prices

In 2019, global steel mills' margins declined, which in turn led to lower iron ore consumption and coking coal prices.

In 2018, HRC benchmark prices exceeded $ 1,000 /t delivered in the Midwest for the first time since 2008, and the robust rise in steel prices and demand since 2016 has provided strong margins for steel producers.

High global steel prices last year were quickly forgotten as US and European steel buyers shrank by 2019 and high iron ore and coke prices slashed margins.
In addition, excess carbon credits during a time of weak margins and lower steel production can limit demand for cleaner, higher quality raw materials, resulting in lower emissions per tonne of steel produced.

Steel markets are currently still testing their lows after last year's high profit margins from steelmakers following robust increases in steel prices and demand since 2016. The rebound in steel prices from current lows in Europe did not take hold as northern hemisphere markets slowed until summer.