Increases in production costs, especially energy and raw material costs, have led steel producers to increase their prices. These cost increases have forced steel mills to demand higher prices.
Local customers in the European market reported that European mills are actively increasing their hot rolled offers to local buyers due to a number of factors, including furnace shutdowns, unresolved technical issues and the receipt of a large number of orders that filled their entire May production schedules.
The increase in hot rolled offers also led to higher cold rolled and galvanized prices. With the majority of users relatively pessimistic about demand in the third quarter and the high prices of local products, buyers with actual demand at the moment are looking for better offers from the foreign market.