Massive cargo ship Ever Given ran aground in the Suez Canal on March 25. The world laughed a little at this, but blocking one of the most important delivery channels in the world for almost three days is causing very big and very costly problems.
For the rolled metal market, the decisive factor will be the length of the block.
“It is difficult to see any noticeable impact on the European steel industry at this time,” said a spokesman for the European Steel Association Eurofer. “This blockage of the Suez Canal, while newsworthy, is likely short-term and likely to be resolved soon.”
If the problem persists, it could affect the European steel sector, “as the market is already tense and supplies are slow,” said the trader.
However, the trader expressed great concern about possible supply disruptions that steelmakers ArcelorMittal Italia currently fear due to pending court decisions on its operations and Liberty Steel due to funding problems.
Hot rolled metal prices in Northern Europe at an all-time high of € 830 per tonne ex-works on March 25, up € 30 per tonne per day, while hot rolled steel prices in Southern Europe rose by € 15 per tonne per day. up to 825 EUR /mt ex-works Italy.