Inflation and financing challenges could be the biggest challenge for steel companies in 2022. This view was expressed by Alessandro Sciamarelli, director of market research at Eurofer, the European iron and steel association, at the Kallanish Flat Steel 2021 conference.
According to him, the market may face a "new currency shock" next year. While this will cause a new jump in prices, high cost will negatively affect demand.
Francois-David Martino, CEO of the German steel service center Becker Stahl SSC, noted that, in turn, inflation began to enter the European consumer market. He added to his comment: To limit the rise in prices of metal products, the European Commission will need to weaken restrictions on imports.
In addition, European metals traders point out that their customers are having trouble attracting loan funds despite low interest rates, which are now significantly below the inflation rate. Many steel product consumers suspended their purchases because they could not obtain financing.
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