Sharp price volatility in European steel and scrap markets is seen coming to an end in 2023, but pre-pandemic pricing levels are very unlikely to return, according to ArcelorMittal director of commercial profiles in Spain Juan Mañá Herranz. Higher prices will be supported by the international steel market and energy situation.
“The price of sections rose by almost €300/tonne between 2021-22, but at the end of last year fell by €340/t. Levels should be stable, fluctuating by €50-60/t or even a little more in the coming months but would never be so low as they were in 2018,” Herranz said during Friday’s EUROMETAL Steel Net Forum Iberia in Porto.
This price scenario is based on growing demand as well as higher production costs related to raw materials purchases, electricity and gas supplies, he noted at the event attended by Kallanish. According to Herranz, Spain should consume 500,000-515,000 tonnes of sections in 2023, up 4-7% on-year. Portuguese demand will range between 137,000-144,000t, which would be 5-10% more compared to last year.
The Iberian steel industry expects the recovery to continue in 2024, supported by a better economic scenario in the EU, which should be felt from the second half of this year, Herranz concluded.
Todor Kirkov Bulgaria
