BELGIUM STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
Belgian hot rolled coil basis
numbers are below those of a month ago, according to MEPS. Delivery
lead times are short. Slit coil, that can be delivered very quickly,
is extremely cheap, leaving very little margin for the distributor.
Third country import competition has impacted on commodity plate
values in December. Domestic steelmakers have conceded another small
discount for cold rolled coil during recent settlements. Chinese
imports are competitive.
Drawing quality wire rod numbers have been rolled over from
November. Steelmakers are not busy as demand is slow. Opportunities
for export sales have allowed steelmakers to maintain structural
section prices, in spite of cheaper scrap. However, resale margins
are being cut.
In the rebar market, distributors are being very cautious and
keeping inventories down as steelmakers continue to give away the
advantages of cheaper scrap. There is also a threat from Turkish
imports. Consumption of merchant bar is down in 2014. We have noted
negative price movements since November.
European Steel Review
- December Issue
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