Metal prices in the UK and Europe have remained elevated versus pre-pandemic levels in 2022. The end of March rounds off an extremely volatile month for product availability and bullish pricing which is largely down to the Russia/Ukraine conflict and energy cost inflation. Despite market volatility, demand remains strong in end markets and margins across steel service centres, traders and producers are healthy. This report touches on some pertinent headwinds that this sector faces which we believe could pose a serious threat to supply chains across the industry, adversely impacting trading and liquidity for many downstream businesses. In the absence of Government backed Covid-19 initiatives we expect insolvencies to increase throughout the year.
Click here to access the full Metals Spring Update