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[Ferro-Alloys.com] European steel indicative margins did not improve in October from September, as lower regional HRC steel prices offset cost advantages from declines in iron ore pellet premiums and scrap, according to an analysis.
Europe HRC to raw materials spreads were largely flat in the third quarter from the low of the previous quarter, and much weaker than in Q1 2019 and from 2018 and 2017 levels.
The decline in steel spreads over the past six months clouds the outlook for European steel producers, which have struggled with weaker demand from automakers.
Some mills have tried to consolidate operations in order to cut costs.
Profitability is being hit just as companies seek to invest further to commercialize cutting-edge steelmaking technologies over the next two decades to reduce emissions. (S&P Global Platts)
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