In early September, European steelmakers were pushing for significant price increases to protect profits from soaring energy costs. This effort was supported by blast furnace shutdowns and other capacity reductions. After gaining initial traction, prices weakened again. By early October, they had returned to September levels and were under continued downward pressure.

Attempts by steel producers to raise selling prices were met with strong resistance from buyers. Inventory levels are high relative to current demand and are lower than expected, with no signs of recovery. Customers are also suffering from high energy costs and production restrictions. Purchasing decisions could be postponed in anticipation of further steel price reductions.

Despite the announced production cuts, buyers confirm that supplies remain good and domestic delivery times are shorter than normal. Mill sales representatives are eager to secure orders, but are undermining their own price aspirations. Steelmakers are reportedly selling at, or in many cases below, the break-even point.

Editor: Lucy Yu