Rising energy prices are having an increasingly significant impact on the global longs market. European mini-mills say that the cost of steel production has increased by 170-200 euros per tonne compared to last year due to the 3-4 times increase in electricity tariffs. As expected, electricity prices will continue to increase in November. However, the price increases they announced have not yet been accepted by consumers. It is obvious that various methods will be used to get it accepted.
The rise in electricity, natural gas and scrap metal prices in Turkey has also forced metallurgists to increase their steel product prices by around $50 per ton over the week. The rise in the exchange rate, along with rising bills and general costs, hit prices. This created favorable conditions for Russian billet and longs producers. Russia created an opportunity to revise its export offers upwards.
The problem now lies in the availability of effective demand, which is a particular problem given the weakening of the Chinese market. Long product and billet prices there have fallen, driven by expectations of a possible expansion in steel production. True, the situation in China is unstable. The smelting volume there will be limited in the coming months and there is doubt about demand.
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