Slovak sheet producer US Steel Kosice shut down its smaller blast furnace, in an attempt to balance supply with low demand and prevent further price falls.

Sources said the plant had to shut down a furnace because its location was heavily reliant on the auto industry, but demand from automakers is minimal. The main reason why the demand for sheets has been weak across the EU was parts shortage and high inventories.

Domestic prices for hot-rolled coils in Europe have been falling since the second half of March due to weak demand.

Most market participants expected that the EU government will announce a shutdown policy of steelmaking facilities due to weak demand and a gloomy consumption outlook.

Steel mills were expected to address the oversupply problems and end the downward trend in the EU market by cutting output.