EU STEEL PRICES REMAIN UNDER NEGATIVE PRESSURE IN JULY
Aggressive offers from third
country suppliers are driving down flat product domestic selling
values in all EU nations. Iran has entered the market of late, as
their export duties have recently been lowered. In general, market
activity is reasonable, despite the slowdown ahead of the European
summer holidays and reduced export sales volumes during Ramadan.
However, little improvement is anticipated in the short term. Buyers
anticipate further price reductions during the third quarter.
Basis figures in Germany have reduced for the second consecutive
month. Imported Asian material is arriving into northern Europe and
putting pressure on domestic producers to lower their selling
values. The Greek crisis has added to the uncertainty in the market.
Nevertheless, demand in the first half of the year was good,
particularly from the automotive and construction sectors.
Prices have come under negative pressure in France this month. There
is fierce competition from imports and between local distributors.
Consequently, resale values remain low. Some buyers are cautiously
re-ordering for their summer requirements. Nonetheless, end-user
activity is subdued with many customers keeping inventories to a
In Italy, the situation at Ilva is still uncertain, despite the two
blast furnaces remaining in operation. Third country suppliers
continue to take advantage of this. Import pressure is very strong
from all over the world, not just China and Russia. Nevertheless,
market activity is generally good.
Prices in the UK have softened as a result of the stronger pound
against the euro. Customers are continuing to use Chinese offers as
a means of negotiating with local suppliers. Demand remains patchy
but distributors are fairly busy and they are reporting reasonable
In Belgium, domestic selling values have been eroded. Distributors
are finding it difficult to make a profit as they are holding stock
previously bought at higher prices. Purchasing activity is, on the
whole, quiet but is better from the building and machine industries.
Spanish prices weakened in July, despite stable domestic sales
volumes. The general election, due to take place towards the end of
2015, is likely to result in restricted government spending after
the summer holidays. This could temper the growth in steel demand
that has been recorded so far this year.
Source: MEPS -
European Steel Review
- July 2015 Issue
MEPS - EU Steel
up for free MEPS steel news alerts