GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
Hot rolled coil basis figures
have softened in Germany, according to the latest report by MEPS.
Expectations for next year are poor as the economy is not performing
as well as anticipated. There is little confidence in the
marketplace. The pipemakers report reasonable activity but their
margins are being squeezed by growing overseas competition,
particularly from China.
In the commodity plate market, service centres are buying only what
they need to cover immediate orders. They have been keeping
inventories under control for some time and, now, many are
destocking. Steelmakers are starting to lose some of the gains made
at the end of the third quarter, partly due to intense import
Distributors are pushing for cold rolled coil price cuts on the back
of softening raw material costs. Domestic suppliers have reduced
their offers. There has been no revival in demand.
Construction-related demand for hot dipped galvanised coil is
static. The auto industry is holding up, although sales of cars to
Russia have dropped sharply in recent times. Basis numbers in the
general market have succumbed to downward pressure, due to
Mills have maintained their low carbon wire rod prices again this
month but customers are calling for decreases. Recoil values have
succumbed to negative pressure from declining scrap costs. In
addition, the finished mesh market is very competitive at present.
Structural section sales volumes are poor where there is strong
competition for the little business that is available. Nevertheless,
suppliers have held on to prices during recent deals but some
slippage could occur in the first trimester.
The rebar market is very competitive. Buyers have successfully
pushed for lower prices as scrap values continue to drop and further
decreases cannot be ruled out in a climate of subdued demand.
Steelmakers have failed to resist customers’ calls for merchant bar
basis price cuts, for the third consecutive month. Purchasing
activity remains cautious as buyers monitor the constant negative
trend. There has been no recovery in business levels.
European Steel Review
- December Issue
MEPS EU Steel Price
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