9 April 2021 | Brussels
The European Union Road Federation, together with its members active in the Road Restraint Systems business, would like to express their concern regarding the recent significant increase of steel prices and its impact on their industry.
Further to the pandemic situation, the industrial activity has experienced a dramatic slowdown and some sectors have even suffered a complete standstill at the beginning of 2020. This was the case for the steel industry, where some 50% of the European production was put on hold.
While the last quarter of 2020 showed a gradual recovery in demand, many producers did not re-start their production. Surplus stocks ran out, but demand continued to grow.
This situation led to both a shortage in stock and an extreme (up to 50%) rise in the price of steel worldwide.
This situation also has a significant impact on the European manufacturers and applicators of road restraint systems, already affected by the health crisis and the decline in activity in 2020.
Only a rapid replenishment of stocks, an increase of supply and gradual drop on market prices could allow a return to a normal situation, without affecting the health of the sector of road restraint systems in Europe and guaranteeing the safety of all road users.