The crisis is developing on the world steel market

Steel production is declining in Europe, which is currently one of the regions hardest hit by COVID-19. MEPS also notes problems with transport shortages and border delays. Long lines of trucks are reported to be waiting to enter some countries. This restricts supply for many companies across the EU and helps maintain steel prices across the continent despite falling demand.

Several manufacturers across Asia are restraining steel production amid weakening demand. This is due to the ongoing fallout from the coronavirus outbreak. While production is declining in most countries, production in China is recovering. Moreover, traders in this country are looking for export opportunities in order to unload excess stocks. Oversupply remains a characteristic feature of the Asian market, despite the less severe impact of COVID-19 compared to Western countries.

Factories, service centers, traders and end users are grappling with an emerging crisis that has hit the global steel market. The challenging environment is expected to continue and is likely to worsen in the coming weeks and months. The downturn in the economic climate will inevitably be reflected in the steel market. Consequently, price declines are predicted in the short term in all regions surveyed by MEPS.