GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
There has been some downward
pressure detected in the German hot rolled coil market, according to
MEPS. A number of service centres have financial difficulties as
end-users press for reductions. Consequently, they in turn, are
calling for discounts from the mills.
MEPS has noted a small downward price correction for commodity
plate. However, recent statistics have revealed that stocks at the
service centres fell during May by over 5 percent, month-on-month,
and that the quantities sold by distributors were up by around 9
Cold rolled coil demand remains satisfactory but, with the exception
of the auto industry, there is no significant improvement. There is
plenty of Russian material on offer but domestic suppliers have
maintained basis figures at the June level.
Auto production is going well with good local sales and a healthy
export market, especially in China and the USA. However, the
carmakers are trying to reduce their steel costs wherever possible,
so distributors who serve that sector complain of poor margins.
Construction related sales of hot dipped galvanised coil are fair.
In the general market, basis numbers have weakened slightly, due to
Low carbon wire rod producers have held on to selling figures for
the fourth consecutive month. There is little activity in the recoil
market, where values are unchanged, despite buyers’ calls for
In the structural sections market, suppliers have been forced to
concede a €20 per tonne discount during recent settlements. Sales
are subdued and supply is in excess of demand.
Rebar prices are unchanged from a month ago. Sales volumes are
running at reasonable levels, with construction output forecast to
grow throughout 2014.
The mills have again succumbed to calls for further discounts for
merchant bar. Purchasing activity is cautious as buyers are unsure
of future price movements. The hope for improvement in business
levels has not materialised, so far.
European Steel Review
MEPS - EU Steel
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