DeepRed
2022-04-15 09:47:38
- #1
I have to revise that a bit because it’s not correct. Steel mills are currently running at full capacity because there is money to be made right now. The price per kilogram in sales is higher than I have seen in 25 years of my professional life. Of course, there are steel mills that have bad contracts with energy suppliers and had them. They are screwed now. Added to that are speculative trades on the stock exchange on alloys needed in secondary metallurgy. That, among other things, has caused problems for the Lech steel mills in Bavaria. Ukraine is not an important steel supplier in Europe; it can’t be the reason. Reinforcing steel does come in large quantities from Russia and Belarus. That is currently where the problem lies. But there are 4 large electric steel mills alone in Saxony and Brandenburg that produce reinforcing steel. And they are currently running at full capacity. The biggest problem there right now is the lack of personnel. Not everything can be explained by the war and Corona. It is probably a mixture of everything. An artificial shortage to make money can also be seen.Steel is expensive and hardly available. The market is so swept clean, I had never experienced that before. Reinforcing steel often came from Russia. Steel mills in Europe are not running at full capacity due to high energy prices, etc. There was once a forecast that things would recover in Q2, but that was before the coal embargo. It will still take a while until it runs normally again. In addition, Ukraine was a relatively large steel producer.