British analysts of the MEPS reported that the European steel prices are approaching the end of the current cycle prolonged fall. Slow economic growth, global trade conflicts, and political challenges have reinforced the pessimism in the European steel market, analysts.
"the Lack of orders, particularly from the automotive sector continues to have a significant negative impact on overall demand. European steel prices are under downward pressure. The delivery time on the domestic market short, allowing customers to either defer a decision about buying, or buy only a small amount," - says MEPS.
However, the price offers from suppliers from third countries started to grow.
the largest steel mill in Western Europe, Ilva is not accepting new orders due to the release of ArcelorMittal's agreement with the government of Italy about the takeover of the company.
If this situation persists, it should help in the reduction of supply across Europe, adding negative tonnage to the existing capacity reductions from other steel producers. Moreover, some buyers believe that steel prices have already bottomed for this cycle and begin the adjustment.