A Steel Ministry report has pointed out to continuing “southbound steel prices” in global markets and recessionary pressures in Europe’s housing market, thereby raising concerns about continued pressure on exports (steel).
In Europe, the construction sector, particularly the residential sub-segment, is experiencing a slowdown and “is likely to enter recession this year, which affected the sentiment”.
Concerns about oversupply are pressuring finished steel prices in the USA amid weakened buying in a typically slow part of the year, the report, accessed by businessline said.
The report states that while in China, prices showed a marginal improvement in August compared to the previous month; weak property sector continues to impact construction-related manufacturing and steel demand there. Output cuts did lead to temporary rally in steel prices, but these were short-lived.
