MEPS report EU Steel price recovery

Meps are reorting EU Steel price increases inline with articles previously posted here.

It is arguable whether this is as a result of increases in demand or the producers restricting supply. Meps reports that production within the EU is down by as much as 6.6% year on year. Whilst it is entirely understandable that the Steelmakers are taking steps to maintain their margins in the face of increasing iron ore and energy costs, the tactic of restricting supply is not without risk. Whilst no one would benefit from the wild plunges in prices that have thrown steelmakers in to financial difficulty in the past, reports that further price increases of €20 to 40 later in the year is worrying. Historically rapid price increases have led to collapse and whilst imports appear not to be a current threat, that can change as European prices become more attractive to exporters.