Increasing pressure on steel mill margins

The profitability of many steel mills was relatively robust until August 2018. The global steel price was high thanks to solid demand for steel and the prices of the main raw materials for making steel (iron ore and coking coal) were under pressure due to overproduction. But the tide has turned since September 2018. The global steel price fell more sharply, while raw material prices showed a strong recovery. This price dynamic ultimately has a major effect on steel mill margins.