Prices for hot-rolled steel in Europe began to decline after end-users of steel products began to refuse earlier offers from manufacturers. In addition, China's iron ore benchmark prices have plummeted due to the country's anti-coronavirus policies.
China's Zero-Covid policy, as well as the ensuing lockdown in Shanghai, has caused the base price of iron ore to drop from 62% Fe to $136 per metric ton CFR China. This is almost 10% less than $151 on April 22.
“The next question is how far will they fall? I believe that iron ore, if Beijing imposes a massive lockdown, will soon be below $100,” says one of the market participants.
At the same time, Russia's statements about plans to seize the entire south-east of Ukraine put upward pressure on European prices, since if the Russian Federation succeeds, almost the entire metallurgical industry of the country will be in the zone of occupation, which will immediately fall under Western sanctions.
This could seriously affect the final consumers of Ukrainian rolled metal products in Central and Eastern Europe.
