Europe Steel situation effected by COVID-19 with price ,trading issue…
The long-term producer Steel Plant (BMZ) has reduced processing capacity in the next round and wire orders of European and auto and auto parts manufacturers. This may reduce production this year by 300,000-350,000 metric tons, and encourages BMZ to carry out a three to a four-month renovation of the soot processing device that was originally scheduled to collect exhaust gas from the second electric arc furnace in 2021. The plan will be in 2020 The fourth quarter of the year, according to sources close to the company.
Price and trading volume
Steel prices are facing downward pressure due to the temporary shutdown of automobile manufacturers in most parts of Europe and the reduction in trade activity in the construction and other steel industries, which has led to the interruption of trade flows. Despite Europe ’s import protection measures, some key steel prices have reached a three-year low in 2019. At that time, the European market was oversupplied. Despite the import protection plan, imports to the EU remained at historical highs, and prices are now even Close to 2009 levels.
The Nordic HR coil ex-works price (Ruhr) started in January 2020 at a price of Eue435 ($ 469.80) / mt, even lower than Eur450 / mt in January 2009, and has risen to Eur474 / mt since the beginning of March 2020 . The impact of production cuts.
S & P Global Platts Energy Information research shows that imports are picking up, and Asia is actively providing imports to Europe. International prices are under pressure, but due to long delivery times and current trade and logistics uncertainties, many buyers have not considered imports. Nordic steel mills hope to provide hot-rolled coil CFR (North Africa) at a lower price because they seek to unload outside the EU to maintain domestic market prices.
Source Xiaomi Finance is integrated from Xinhua Net, Economic Observation Net, Overseas Steel, Tyco Steel, etc.
