Steel Markets

CRU: The Metals Price Collapse During the GFC Was Not Immediate​

Written by Laura Miller

March 24, 2023

The failure of Silicon Valley Bank (SVB) and acquisition of Credit Suisse are unlikely to cause severe financial disturbance on the scale of the global financial crisis (GFC). However, these events further amplify the probability of recession in the US and Europe, and they have certainly got the market talking about whether a new GFC is imminent.

Looking back at 2008 we can see that although the failure of Lehman Brothers was the event that triggered a final collapse in metals prices, multiple events connected to the US subprime crisis occurred over a long timeframe before that, during which time metals prices largely continued to increase. Base metals prices did drop ahead of Lehman, but for steel the party (or denial) continued right up until the last moment.

Editor’s note: Click on the table below to enlarge.

03.24.23 CRU GFC

See recent insights, ‘Bank failures underline recession risks‘ and ‘Banking sector’s woes cause oil prices to plummet‘ from the CRU Economics team for further analysis of the ongoing crisis.

By CRU Principal Analyst Matthew Watkins

This article was originally published on March 22 by CRU, SMU’s parent company.

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Learn more about CRU’s services at www.crugroup.com.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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