In the second half of 2022, coil producers in Europe reduced their production volumes, with some blast furnaces shutting down in order to offset the decline in supply and demand and thus prevent flat steel prices from falling. While blast furnace production fell, iron ore markets suffered, particularly pellet demand, and in some cases, sinter and lump ore revived at lower costs.
After restocking was complete in january, buyers expressed concerns that higher prices might be unsustainable. This was driven by strong end-user demand, with blast furnaces reopening and the supply of hot rolled coils increasing. However, the steelmakers insist that they are doing well with orders and demand remains stable, allowing for further price increases.