Europe’s energy 'independence' push and sanctions against Ru | The Paradigm Shift Channel ⏳

Europe’s energy 'independence' push and sanctions against Russia weigh on the steel industry. Reports of decreasing retail steel sales is preventing any expected price increases due to drop in production. Steelmakers rely on natural gas for ironmaking in blast furnaces as well as for steelmaking in electric arc furnaces.

Traders -“Energy costs are hitting people hard. There are more defaults on energy bills.” "Summer holidays in the Northern Hemisphere will also mean lower building activity and lower demand. This is sure to put further downward pressure on steel.

Chinese iron ore port inventories registered their sharpest decline of the past 12 months. This is with rebar production well off last year levels. (Photo)

India imposed an export tax of 15% on some steel products last weekend, at a time steelmakers are looking to make up for tepid local demand. The taxes were part of a series of measures India has taken to rein in retail inflation.