Scandinavia

European inflation now appears to be under control and is expected to be around 2%. This is good for European industry as it is one of the most important preconditions for falling interest rates. The European Central Bank lowered interest rates from 3.75% to 3.50% in mid-September and further reductions are expected in the coming months.

Sales prices for recycled steel are currently affected by geopolitical tensions, which seems to mean that Turkish steel mills have temporarily lost some of their competitiveness. However, selling prices in Turkey have increased in recent days owing to the strikes at ports on the US East Coast. This is probably only a temporary situation as, at the time of writing, a tentative deal has been announced to end the strike action.

In Europe, steel mills are struggling with falling sales and increased competition from, among others, China. Several players have reduced capacity.

Currently, India, Pakistan and Bangladesh are not competitive markets, not least because of high freight rates. Container freight from Europe to Asia is still going around Africa. Rates are naturally affected by this but have now found a more realistic level. Freight rates on bulk have remained stable throughout recent months.