Steelmakers in Northwestern Europe are seeking an increase of €20 per metric ton on hot rolled coil. Market sources told MetalMiner that the hike in steel prices comes despite subdued demand for the flat rolled product going into September.Mills are reportedly seeking €650-670 per metric ton EXW for HRC for November rolling and December delivery. This is up significantly from the €630-650 reported in late August.
“Increasing expectations that Beijing will mandate steel output controls in the near future drove mills to ramp up production in the short term to undercut any controls, increasing demand for iron ore,” the website stated. Indeed, workers at U.S. energy major Chevron’s LNG project started strike action that same day. According to other reports, the poor demand has also prompted Liberty Steel Ostrava to shut down one of its three coking ovens.Higher interest rates by central banks in key economies due to sharp inflation after Russia’s invasion of Ukraine, which began in February 2022, continue to impact European construction activity. Indeed, construction within the 27-member European in is likely to decline 1.