GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
According to the latest report
by MEPS, there has been no movement in German hot rolled coil basis
prices. In general, steelmakers still have capacity available for
the fourth quarter. Pipemakers report that their business is not
improving. Order quantities are reasonable but profit margins are
lacking due to world-wide competition. Distributors are trying to
reduce hot rolled coil stocks for the year-end. We hear that some
service centres have already finalised their January business at a
rollover price from the fourth quarter.
Recent statistics show that inventories of hot rolled plate at
stockists are growing and sales volumes have fallen. The general
economic outlook is less optimistic than of late, partly due to the
Ukrainian problem, causing investors to hold back. Commodity plate
values are unchanged from those reported in October.
Cold rolled coil domestic suppliers have cut their final quarter
offers. There has been no revival in demand since the summer
vacation and mill order books are lean. Local auto manufacturers
have experienced a sharp drop in sales to Russia but premium car
exports to other countries are holding up. Construction-related
sales of hot dipped galvanised coil are static. Basis numbers in the
general market have not recovered due to oversupply.
Domestic mills have maintained low carbon wire rod prices this
month, after conceding a small discount in October. There is little
activity in the recoil market, where values are, again, unchanged,
despite negative pressure from declining scrap costs.
Sales volumes of structural sections are poor, where there is strong
competition for the little business that is available. Nevertheless,
suppliers have held on to prices during recent negotiations, after
trimming them last month.
Rebar buyers have successfully pushed for lower prices as scrap
costs drop further. The market is subdued. Merchant bar steelmakers
have failed to resist customers’ calls for basis price cuts, for the
second consecutive month. Purchasing activity remains cautious as
buyers fear further downward developments. There has been no
recovery in business levels.
European Steel Review
- November Issue
MEPS - EU Steel
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