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As the portal aktiencheck.de reports, steel production in Europe rose by 13 percent in October compared with the previous month. And for the first time since March, it increased for two months in a row. But steel producers are still waiting.

Heating up blast furnaces
European stocks: Steel producers supported

Production capacity in Europe remains unused

It is also reported that despite this recovery, 19 percent of production capacity in Europe remains unused. Because of the uncertainty caused by the pandemic, many steel producers have so far been hesitant to start the time-consuming and costly process of heating the blast furnaces.

Foreign supply cannot compensate the lower production

Even foreign supply cannot compensate for the lower domestic production; in the first three quarters steel imports fell by almost 15 percent year-on-year. High domestic demand in China and anti-dumping investigations of steel mills in Turkey could continue to weigh on imports in the future.

Demand for steel has recovered quickly

Demand for steel, in turn, has recovered much more quickly and is likely to remain strong as the economic recovery continues. As a result of the high demand, inventories have already been significantly reduced and delivery times extended in some cases until January.

Steel prices and thus the share prices of European steel manufacturers are therefore likely to be supported by the continuing supply shortage.

Source: aktiencheck.de


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