US, European steel sectors face challenges

The pressure on steel prices is intensifying. The coronavirus and the Great Lockdown are causing a strong macroeconomic downturn. Demand from the construction and automotive sectors is weak, while the availability of steel is accumulating. This has an impact throughout the value chain. The decline in demand for steel also means less demand for iron ore, coking coal and scrap. This will bite as many mines continue to produce, which is, after all, still financially feasible due to the lower energy costs