EU steel market 'challenging': Liberty Steel

Market: Metals
21/04/23

The European steel market is "experiencing challenging conditions", a Liberty Steel Group spokesperson told Argus, asked whether its Ostrava mill is behind on payments to suppliers.

Liberty said despite the difficulties it was "actively working with suppliers and customers to ensure" Ostrava's activity is not affected. Ostrava is behind on payments to its local energy supplier Tameh Czech, according to market sources.

Patrik Schober, a media representative of Tameh Czech, said negotiations are "under way" between the companies, but would not comment further.

The Liberty spokesperson said it did not comment on its relationships with individual suppliers. Sources suggest Liberty is also behind on payments to raw material suppliers for its European plants.

The company recently had its tolling contract for Dunaferr in Hungary extended until the end of June. At Dunaferr, the state is paying wages and guaranteeing energy supply.

Although coil prices have risen in recent months, they have fallen over the last few weeks with demand very quiet despite major production disruption and long lead times from local suppliers.

Since 4 April, Argus' benchmark northwest EU hot-rolled coil index has fallen by €16.50/t ($18.11/t), while the daily Italian headline index has dropped €33/t over the same period, partly because of falling Asian prices and the stronger euro relative the dollar.

Service centres across Europe have been struggling to pass off higher costs to their consumers, which has increasingly inhibited their ability to pay stronger levels. Low import prices, with Argus' cif Italy HRC assessment €134/t below the domestic marker, have further constrained demand.

By Colin Richardson

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