The decline in global steel prices and high raw material costs negatively affect iron and steel companies.
According to experts; The sharp fall in HRC prices and the increase in raw material costs have a negative impact on companies' balance sheets and share performance.
World steel industry; While it has been in a difficult process due to protectionist measures since 2018, the demand that accumulated in the second half after the contraction experienced in the first half of 2020 due to the pandemic caused price increases in both raw materials and finished products.
With the commodity price increases after the pandemic in the steel industry and the accompanying foreign exchange inflation, there was a significant increase in scrap and ore prices compared to the past.
The price of ferrous scrap, which has been in the range of 200-350 dollars/tonne for the last 20 years, has increased to 300-550 dollars/tonne. Hot rolled coil (HRC) and cold rolled coil (CRC) prices also tested their peak levels.
While getting used to this new normal after the pandemic, global steel prices started to decline as the world's largest steel producer China focused on exports due to weak domestic demand.
Discounted supplies from Russia and Iran and increasing stagflation concerns further increased the pressure on prices.
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