GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
German hot rolled coil basis
values remained unchanged month-on-month in September, according to
MEPS. Although the pipemakers have satisfactory order books, general
demand in the market is flat. During the summer, some business was
concluded as low as €400 per tonne but, now, figures have recovered
to the early July level. A number of big users have still not
finalised fourth quarter negotiations.
We have noted a small upward price correction for commodity plate.
Stock levels are stable. Activity in market is low as the economy
slows. However, the higher specifications are performing better as
the global linepipe market picks up, with several big projects
already running and new ones to come.
There has been no significant improvement in demand for cold rolled
coil since the summer vacation. Despite announcements to the
contrary, domestic suppliers have maintained basis figures at the
The German automakers are struggling with declining export sales.
They continue to try to reduce their steel costs wherever possible.
Construction-related sales of hot dipped galvanised coil are static.
In the general market, basis numbers have not recovered, due to
Low carbon wire rod mills have held on to selling figures for the
sixth consecutive month. There is little activity in the recoil
market, where values are unchanged, despite the producers’ desire to
In the structural sections market there is strong competition amidst
subdued sales. Suppliers have, so far, failed to implement their
Inventories of rebar are low. Order intake at the mills is poor.
Prices have increased by €10 per tonne on the back of escalating raw
The mills have, so far, resisted customers’ demands for further
basis price cuts to merchant bar. Purchasing activity remains
cautious after the holidays as buyers are unsure of future price
movements. There has been no improvement in business levels.
European Steel Review
- September Issue
MEPS - EU Steel