He said that steel production in the region is likely to decline in the fourth quarter as the European economy recovers after the coronavirus epidemic ends. Rising inflation in the euro area may lead to changes in monetary policy. At the same time, a possible increase in interest rates could undermine the stability of financial markets.
In addition, semiconductor shortages leading to a decrease in production in the automotive industry, other problems with the international supply of goods and components, increased energy and transportation costs, steel products can have a significant negative impact on the European industry and reduce demand.
S&P Global Platts' survey of German steelmakers, distributors, traders and end users in early October showed that most respondents were concerned about demand from the auto industry, competition from imported rolled steel, and stockpiling.
The overall value of the index is 25 points against 31 in September, with 50 points separating expected growth from decline. Survey respondents also point out that the risk of overstocking and lower prices for flat products is high.
True, Alessandro Schiamarelli of Eurofer believes that the European steel market will recover in 2022. First of all, this will be facilitated by the resumption of growth in the construction industry.
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