The steel market in Europe after a harrowing phase for the past 4 months seems edging towards bottom. Low stock levels coupled with difficulty in procuring cheap material is indicative of ground zero.
That's a combined result due to the persistent low stock levels and the growing difficulty of finding materials at cheap prices.
Domestic Mills have opted to cut production than to decrease prices sensing the growing dependency of buyers vis à vis imports mainly due to uncertain timing.
The traditional import sources have undergone reshuffling after the alteration ownership of Ilyich led to drying of offers EU putting pressure on those dependent on it. Moreover the last tender of Mobarakeh has been awarded for export to Middle East, curtailing the availability for EU buyers reeling under ongoing sanctions.
Unusually warm summer in Russia with temperatures reaching 40 °C coupled with stringent pollution control measures have dented the output levels of many mills affecting the export availability.
It is expected that the prices of flat products in Europe would pick up after a fortnight as the stock replenishment commences which will not be supported by availability immediately.