European steel buyers expect further price reductions
Despite attempts by regional metallurgists to raise the base price in order to restore profit margins, prices for European steel fell in October, MEPS noted. Market activity has noticeably deteriorated. The lack of orders from the automotive sector continues to negatively impact overall demand. Delivery times have been shortened, allowing European buyers to either delay purchasing decisions or buy only small quantities.
Purchasing from distributors is still weak due to concerns about resale. Winter Is Coming. As a result, enterprises are reducing inventories. Metallurgical plants are eager to place new orders, but most market participants, expecting even lower prices in the near future, remain very cautious. In addition, global trade tensions remain, as well as political and economic uncertainties. Despite recent production cuts at large factories, customers do not feel a significant supply constraint.