As reported by spglobal.com, steel supply in the European steel market is expected to remain tight in the first half of 2021. Automotive industry will drive demand. Although pre-pandemic levels will not be reached again until 2022. That’s the analysis from equity research firm Jefferies.
Update 2021: Crazy steel shortage 2021: Where to get stainless steel now?
Carbon steel market in focus
Within a note published on Dec. 10, Jefferies said the ongoing supply shortage will likely lead to higher steel prices. The carbon steel market is expected to outperform stainless steel and oil country tubular goods in 2021.
Steel demand will rise 8 % in 2021
The company forecasts European demand will rise 8% in 2021. Led by a 15% recovery in the auto industry. However, the auto industry is unlikely to reach 2019 levels until 2022, Jefferies said. Construction, the largest European end-use market for steel, is expected to grow 5% next year.
Expected announcement for anti-dumping duties on HRC
The expected announcement of provisional anti-dumping duties on Turkish HRC imports to the EU, which so far have accounted for 28% of the EU’s HRC imports for 2020, is expected to further exacerbate the supply situation.
Hot rolled coil prices risen by more than 200 EUR/ mt
Hot rolled coil prices in Europe have risen by more than Eur200/mt since June, according to the S&P Global Platts index EXW Ruhr and Italy, with sources reporting a severe supply shortage on the spot market. With mills offering limited material due to production constraints and tight availability of imported material.
Source: spglobal.com
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