Disruptions in the work of Ukrainian enterprises and rising fuel prices have pushed steel buyers in Central Europe to reorient to the domestic rolled products market, according to a new issue of the podcast "Market in a matter of minutes."
The reduction in supplies in Poland and the Czech Republic helped to keep down prices for rolled products. This conclusion is contained in the latest steel market survey. However, analyst Chris Jackson believes that weakening demand may prevent further price increases.
"We believe that rising energy and transportation costs will support steel prices in the short term," Jackson said.
At the same time, according to him, even against the background of rising costs and reduced supplies from Ukraine after Russia's attacks on the country's metallurgical enterprises, it will not be easy for factories to maintain the current price level.
"In the long run, this is likely to lead to lower steel prices. It will be difficult for metallurgical enterprises and the entire supply chain to maintain such levels if demand remains weak," he added.
The podcast is hosted by Tom Sharp, a member of the European Parliament. The release, dedicated to the markets of Poland and the Czech Republic, is available on major audio platforms.
The full version is also posted on YouTube. The 12-minute edition discusses, among other things:
- steel demand in Central Europe, including from the automotive and defense sectors of the region;
- increased competition in the secondary market from foreign suppliers, causing dissatisfaction among service centers and end users in Central Europe;
- the increase in interest rates and its impact on steel demand.
"The Market in a Matter of Minutes" is included in the MEPS podcast series "Talking about Steel". Each issue provides updated information on a specific segment of the steel market, which is analyzed in the MEPS reviews. The reports contain data on prices on the spot and contract markets, price indices, comments from market participants and forecasts for 12 months.