A fire accident at ArcelorMittal's steel plants in Europe has delayed the expected start of production until June, leading to some changes in the European steel market.
The delay in production, which was scheduled to resume in May, led to an increase in short-term emergency steel orders from Europe. In particular, demand for key products such as hot-rolled carbon steel, galvanised steel and stainless steel increased. This was because customers were looking for fast deliveries to meet their urgent needs.
However, with the start of the summer holiday season, urgent orders are gradually decreasing and demand from Europe is expected to remain at a low level until the end of August. During the holiday period, market participants expect a drop in steel demand as most customers slow down their business and reduce demand.
Nevertheless, European steel demand is expected to increase after August. Steel consumption and demand are expected to increase as the adjustment in production is completed and the market normalises. In addition, the revival of the construction and automotive sectors may also boost demand.