Most of steel prices have dropped by at least EUR 5 per tonne, increasing uncertainty and anxiety in the steel industry. Most suppliers started to sell their products quickly, fearing that the market would fall further. This caused margins to narrow considerably.
According to SteelRadar data, wire mesh prices in the UK fell. Prices fell by EUR 1.5 to EUR 582.50 in the week to 20 May. This decline is recognised as an indication of the economic recession across Europe and the slowdown in the construction sector.
HMS 1/2 80:20 scrap prices fluctuate depending on sales and demand and are trading in the range of 240-250 pound to fulfil local contracts. This price range reflects the volatile nature of the market and the uncertainty of demand. In particular, the slowdown in industrial production and the decline in steel demand are keeping prices under pressure.
Increasing energy costs are an important factor directly affecting steel production costs. The rise in energy prices in the UK increases the costs of producers and puts pressure on final product prices. This situation both narrows the profit margins of producers and increases the costs of other stakeholders in the supply chain.
Sources indicate that this decline in steel prices may continue in the short term and it may take time for the market to find a balance. However, a recovery in global demand is expected in the long term, which may have a positive impact on prices. Sources also emphasise that government investments in infrastructure projects may increase steel demand and support prices.
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