Manufacturers have closed their businesses, and workers are sent home, as the authorities try to control the spread of the virus, which spreads rapidly, especially in the Western world.
"this month over the steel industry has hung a dark cloud. We are in unprecedented times. In all regions of the steel mills close down factories or cut production - either voluntarily or under the pressure of national governments," - said in message analytical centre MEPS.
Plants close across the U.S., with announcements made by several manufacturers in recent times. It is expected that many other manufacturers will follow suit in the coming weeks. American steel mills are asked to include them in the list of "basic industries" to prevent the forced shutdown. Despite the reduced availability of steel products this month in the U.S. there is uncertainty in sales.
steel Production is declining in Europe, which is currently one of the regions most affected by COVID-19. MEPS also notes problems with lack of transport and delays at the borders. As reported, a long queue of trucks awaiting entry into some countries. This limits the supply for many companies across the EU, and yet helps to support steel prices on the continent, despite the drop in demand.
a Few manufacturers throughout Asia to limit steel production amid weakening demand. This is due to the continuing effects of the outbreak of coronavirus. While production is declining in most countries, production in China is recovering. Moreover, traders in this country looking for export opportunities to offload surplus stock. Excess supply remains a characteristic feature of the Asian market, despite the less serious effects of the use COVID-19 compared with Western countries.
Plants, service centers, traders and end-users struggle with a developing crisis in the world steel market. It is expected that the difficult conditions will continue and will probably escalate in the coming weeks and months. The downturn in the economic climate will inevitably affect the steel market. Therefore, in the short term in all regions is projected to decline in prices, say MEPS in.
Earlier it was reported that Ukrainian industrial company "Interpipe" said about the possible reduction of sales volumes in the second and third quarters of this year by 30-50% due to the fall in oil prices and reduced activity of the major consumers of oil and gas pipes, as well as the epidemic of coronavirus in the world.
"All the previous crises it was possible to estimate, to calculate, from an economic point of view. The crisis that the world is today, can not be rationally estimated. With high probability we will have to take unpopular measures to save the company," – said General Director of "Interpipe" Fadi Hraibi.