September was one of the most unlucky months for steel companies in recent years.

In just over four weeks, the cost of steel products in the main markets fell by $ 30-50 per ton and fell to its lowest level in 2.5-3 years. At the same time, the market has not yet reached stabilization; the decline in it continued in the first week of October. Of course, one of the reasons for the recession, which, by and large, began in February-March of this year, was the deterioration of the overall economic situation in the world. Almost all states faced the problem of narrowing the solvent demand for steel products. This was due to a whole range of factors, among which there can be called an excess of production capacities, a decline in the living standards of the population of Western and new market countries, local financial and economic crises (Turkey, Argentina, South Africa), increased international tension, increased corporate debt and increased government budget deficits .

The immediate cause was, perhaps, the aggravation of the trade conflict between the United States and China. As many experts warned, he provoked a recession in the global economy by the fact of its occurrence. Throughout spring and summer, prices for steel products fluctuated, in many respects, under the influence of the latest news coming from the "front". And in September, this confrontation ceased to play a major role. Depression in the global economy has become a fait accompli, and this has fallen off prices for steel products to the level of February 2017 or even October 2016.

 

Based on materials: https://metalinfo.ru