After a rapid rise in domestic steel prices across Europe in the second half of 2020, market sources have been voicing concern that the situation will echo the scenario of 2008, when a price spike was quickly followed by a sharp fall.
Fastmarkets takes a look at the differences and similarities in the market situations of 2008 and 2020.
Domestic prices for both flat and long steel products increased dramatically in the second half of 2020. One of the main drivers was a shortage of both domestic and imported steel products after demand started to recover.
Due to Covid-19 lockdown measures across Europe in the first half of last year, a number of steelmakers had to idle capacities to balance supply with sharply declined demand. While electric arc furnace (EAF)-based long steel producers were quick to restart their facilities, blast furnaces remained shut for longer.