Prices forecast downgraded on weaker demand

We have downgraded our metallics price forecast for 2022 Q4 as demand has proven weaker than expected, with little buying interest amidst steel production cuts related to weak demand and increasing costs, mainly in Europe. We continue to believe restocking will give support to prices in the US and European domestic markets in October, while seasonality will bring prices up q/q in 2023 Q1. Nevertheless, prices will remain below the levels seen in 2022 H1.  

We have also lowered prices in 2023 alongside the expectation of weaker demand. Inflationary pressures and high production costs will continue to put pressure on steel demand and production, which will limit metallics demand growth.