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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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November 2019 | Steel Forecaster


Reduction of supply in the EU could help prices to stabilize: International Flat Product Market Analysis


ArcelorMittal announced that it will be reducing output at a number of its production facilities, with a number of closures starting in Q4; some mills curtailed output without public notices.

A downtrend in European HRC prices led to a squeeze in producers’ margins. As our first chart illustrates, margins of European EAF and BOF HRC producers traditionally moved together, averaging in the past five years at €220 and €204 per tonne respectively. But a jump in iron ore prices earlier this year meant that hot metal costs went up significantly, while HRC prices were going down under pressure from weak end-user demand and competition from imports. As a result, by September an estimated HRC-hot metal spread dived to just €110 per tonne, the level last seen at...

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