GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
According to MEPS, general
demand in the German hot rolled coil market is flat, although the
pipemakers are enjoying satisfactory order books. Steelmakers have
failed to lift fourth quarter basis values. Most big users have now
finalised their business for the October/December period
Hot rolled plate stock levels are stable, where distributors’ sales
are climbing. The general business outlook is mixed, partly due to
the Ukrainian problem and, therefore, investors are holding back.
Nevertheless, commodity plate values have advanced a little since
our last report.
Domestic suppliers have not implemented their proposed final quarter
hike, for cold rolled coil, as there has been no revival in demand
since the summer vacation. Construction-related sales of hot dipped
galvanised coil are static. In the general market, basis numbers
have not recovered due to oversupply. The German vehicle
manufacturers continue to try to reduce their steel costs wherever
possible, as they struggle with declining export sales.
After six months of level pricing, low carbon wire rod mills have
conceded a small discount during recent negotiations. There is
little activity in the recoil market, where values are, again,
unchanged although there is negative pressure from declining scrap
There is strong competition amidst subdued purchasing activity in
the structural sections market. Suppliers have been forced to trim
prices to try to stimulate buying interest.
Rebar demand is subdued and there was renewed negative pressure as
scrap costs continued to tumble. Producers have lost half the
increase secured in September.
The mills have failed to resist customers’ demands for merchant bar
basis cuts. Purchasing activity remains cautious as buyers are still
unsure of future price movements. There has been no improvement in
European Steel Review
- October Issue
MEPS - EU Steel