It appears Steel has reached an area of overhead resistance and at a quick glance one may assume it's ready for a break after temporary sector distortions due to covid and supply issues that plagued many sectors. We also know there are pressures from "cost inflation" as well that plague mines, as well as builders but it seems too early to tell if price will turn around and head down, fairly, quickly, or will these pressures in supply force prices upward.
It's also been suggested there is enough supply overhead despite, "sheet mills in North America relying heavily on the low phosphorus pig iron from Ukraine and Russia", according to industry publication the Steel Market Update. Russia and Ukraine’s pig iron supplies account for 60% of US imports.
Prices for steel have been falling since the fourth quarter of last year as supply exceeded demand, according to Axel Eggert from the European Steel Association. If supply exceeds demand, it's a no-brainer, however, there's this below:
“Ongoing supply chain disruptions, skyrocketing energy and carbon prices, as well as persisting inflation are putting the recovery of the steel sector at risk. Combined with the current EU climate and energy policies, these are the ingredients of a dangerous cocktail that may drive Europe into a structural crisis and industry out of Europe."
There's a push and pull of we have enough vs we won't have enough because of a, b and c. It's too early to tell. Need to just watch price as that will be the canary in the coal mine. :)
It's also been suggested there is enough supply overhead despite, "sheet mills in North America relying heavily on the low phosphorus pig iron from Ukraine and Russia", according to industry publication the Steel Market Update. Russia and Ukraine’s pig iron supplies account for 60% of US imports.
Prices for steel have been falling since the fourth quarter of last year as supply exceeded demand, according to Axel Eggert from the European Steel Association. If supply exceeds demand, it's a no-brainer, however, there's this below:
“Ongoing supply chain disruptions, skyrocketing energy and carbon prices, as well as persisting inflation are putting the recovery of the steel sector at risk. Combined with the current EU climate and energy policies, these are the ingredients of a dangerous cocktail that may drive Europe into a structural crisis and industry out of Europe."
There's a push and pull of we have enough vs we won't have enough because of a, b and c. It's too early to tell. Need to just watch price as that will be the canary in the coal mine. :)