Europe steel price recovery may be slow, keeping HRC margins weak: banks

摘要

London—European steel prices may be bottoming but weak flat steel margins are set to persist, with no sharp improvement in sight, according to investment bank analysts and market sources. However, the lows in steel prices and margins may be over, as ArcelorMittal plans steel production cuts in various European locations over the second half, and Tata Steel Europe and other mills are also producing lower quantities this year.Carbon steel prices may have troughed in Europe, while stainless steel prices are expected to see weakness persist on nickel alloy supply increases prompting destocking, Bank of America Merrill Lynch said in an investor presentation this week.