• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 8 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 8 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 11 days Bankruptcy in the Industry
Metal Miner

Metal Miner

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends,…

More Info

Premium Content

Restocking Efforts Lift Steel Prices

  • Steel prices in Europe are set to rebound on the back of strong demand.
  • Many end users now need to restock material, which will drive up prices.
  • Steel demand outside of China will be strong as economies bounce back from the COVID-19 pandemic.
Steel Prices

Healthy construction demand and increased activity from the auto sector are likely to push up northern European prices for hot rolled coil in January and into February, following decreases from the previous month, sources stated. Mills are now transacting material at around €900-920 ($1,020-1,045) per metric ton exw, down from previous transactions €980-1,000 ($1,110-1,135) heard in late December.

Cold rolled coil normally carries a premium of €80-120 ($90-135) per metric tons.

Turkish imports

An onslaught of imports from Turkey, where producers targeted Europe in response to hyperinflation in that country, had put downward pressure on domestic prices for the flat-rolled product.

Related: Oil Prices Stable After API Reports Small Crude Draw

Indian producers were also targeting Europe with offers of as low as €820 ($930) per metric ton CFR Europe.

Besides the imports, a rapid rise of infections from the Coronavirus’ Omicron variant had stifled activity in December, as European states had introduced restrictions in response to it. Netherlands had also declared a lockdown on Dec. 18, but started to ease restrictions starting the previous week.

Restocking needed post-Covid restrictions

Many end users now need to restock material, the source added which will drive up prices.

Steel prices also normally rise in anticipation of warmer weather, meaning increased construction work.

Demand for flat-rolled products from the auto industry is also rising as the deficit of microchips that hobbled the auto sector in 2021 has started to improve, the trader said.

That deficit nonetheless still exists, however, other reports noted, and will likely continue into 2023.

Strong steel demand

One analyst also agreed that steel demand outside of China will be strong as economies bounce back from the COVID-19 pandemic economic stimulus programs by various national governments.

Production restraints as part of decarbonization efforts in China, however, are likely to see crude production there remain static at about 1.03 billion metric tons, the analyst noted.

Iron ore restocking by Chinese end users will nonetheless translate into higher prices for end-users elsewhere, the analyst added.


The benchmark price for 63.5 Fe fines was $129.30 per metric ton CFR Tianjin, from a low of $80.85 on Nov. 15.

Heavy flooding in Brazil’s Minas Gerais State in the past week has also negatively impacted mines in the area, with many producers having shut down their operations.

By AG Metal Miner

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News