Why tensions remain high in steel

Posted on Apr 13, 2021 at 7:38 amUpdated Apr 13, 2021, 7:41 AM

Cries of alarm are increasing. A few days ago, the French Building Federation warned of the soaring prices of steel products for construction, “from + 20% to 30%, or even more on certain products”. At the end of January, it was the Federation of Mechanical Industries (FIM) which publicly denounced the situation. “Since then, the situation has worsened further, with delivery times reduced from 5 weeks in usual time, to 12-15 weeks on certain alloys”, worries Philippe Contet, the general manager of the FIM.

In the automobile the observation is identical. “The spot price of steel has gone from 550 euros per tonne in July 2020 to 830 euros today, and on certain flat products we are in a shortage situation”, affirms Claude Cham, the president of the FIEV (Federation of vehicle equipment industries). A situation to say the least paradoxical, while the European steel manufacturers regularly denounce the overcapacity of production on the Old Continent.

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