Petros Korkovylos Hellenic Halyvourgia Chief of Trade
2023 was another year that proved that in the steel markets nothing ever stays the same and constant change is the only sure prediction.
In Europe, we saw actual demand declining across the board and prices remaining on a downward to stabilizing path. This was normal after prices had reached high levels in 2022 during the energy crisis and the war in Ukraine, which had prompted increased buying activity. Moreover, inflation bit hard, and this was detrimental to physical demand. In addition to all that, we also had the Gaza conflict in the last quarter, which has been another negative factor for demand and which creates extra confusion, especially in the Mediterranean steel market.
In Asia, things were not great, partly also due to the substantial increase in Chinese exports. This was not very much expected and also led to lower prices of steel products, especially in Asia. India was probably the best performer, having seen important increases in demand and in production. The US also witnessed reduced production rates and demand levels, but still at very healthy levels.
Concerning 2024, we expect to see some demand stabilization in Europe and prices to stabilize as well, at higher levels than pre-2022. Of course, the developments in the two wars currently happening will also determine energy costs, which in turn will affect demand and pricing.
In Asia, we also expect to see some better demand, due to Chinese policies taking effect. India will also play a crucial role, if they can keep up with their excellent performance of 2023. The US market also looks promising, and, being an election year, we expect demand to be strong.
Apart from the above, we continue to see more trade restrictions both in finished products and raw materials across the globe, since governments want to protect their steel production. Europe is trying to push hard on its environmental policies and others are following suit in order to be able to also access the European market. This is encouraging as we all work for the protection of our planet.