Steel prices have widened their recovery after remaining in the negative trajectory for a major time period this year. The metal is gaining strength as escalating supply worries from the Eurozone is trimming the demand-supply divergence.
Energy prices are soaring like there is no tomorrow in the old continent after Russia cut off the gas supply from its main Nord Stream 1 pipeline under the Baltic Sea in response to western sanctions. This has forced the steel mill owners to shut down their smelters as rising production costs have demolished the profit margin structure. The companies are failing to achieve the break-even level, which has forced them to halt their production processes.
