Steel prices in Europe fell to an annual minimum
margins in the European steel industry in October compared with September fell more below< / span>, as falling regional prices of hot rolled steel (HRC) negate the cost advantages from lower prices for scrap and iron ore.
Difference the prices of raw materials and finished rolled steel in North-Western Europe, according to Platts averaged 247,28 euros per tonne in October compared to 251,40 euros per tonne in September.
Regional spread HRC averaged 235,75 euros per tonne in the third quarter, compared to 229 euros per tonne in the second.
In July, the spread reached low 206,76 euros per tonne, as high prices for iron ore increased costs.
According to European industry sources, the price difference per ton of raw materials and finished hot-rolled steel may be close to break-even operating margin for the steel industry after considering the additional costs of logistics, energy, services and labor.
In October, the European hot-rolled steel according to Platts fell to the average value 434,87 euros per ton from the factory in the Ruhr compared to 459,81 euros per ton in September fell to the lowest price for the whole year.
the Downturn in the steel industry over the last six months overshadows the prospects of the European steel producers, which struggled with weak demand from automakers.
the profitability of the European steel makers is also reduced with rising costs of developing new technologies in steel production to reduce emissions.
Prices for coking coal of poor quality, delivered in Rotterdam in October practically has not changed.
Regional prices for shredded scrap in Northern Europe in October continued to decline.
the Difference between steel prices and raw materials is estimated by the margin which does not take into account the costs of internal logistics, electricity, natural gas or other domain and metallurgical materials such as ferroalloys, anodes and refractory.
the downward Trend in the margin below 250 Euro led to lower steel production in Western Europe this year.