Global Steel Price News from MEPS (International) Ltd.

 Steel price news, stahlpreis nachrichten, de acero noticias de precios, nouvelles prix de l'acier, 钢材价格新闻, صلب سعر أخبار

  Home Company Profile Steel Industry Analysis Meps Publications Consultancy Independent Studies
 
MEPS Steel Prices On-line MEPS Steel Reports On-line MEPS Industrial Sector Steel Price Index

Company Profile
Steel Industry Analysis
MEPS Steel Publications
Steel Consultancy
MEPS World Steel Prices
Independent Studies
Request Free Publications
MEPS Index Steel Prices
Subscribe to Publications
Steel Statistics
MEPS Steel News
Industry News
MEPS Sponsored Events
Steel Links
Subscription Rates
Add Link To Website
Content for Websites
Contact Us
Site Map
 
World Carbon Steel Price
World Carbon Steel Price Index
EU Carbon Steel Price
EU Carbon Steel Price Index
Asia Carbon Steel Price
Asia Carbon Steel Price Index
North American Carbon Steel Price
North American Carbon Steel Price Index
Flat & Long Carbon Steel Price
Flat & Long Carbon Steel Price Index
All Products Composite Steel Price & Index
Stainless Steel World Price
Stainless Steel World Price Index
EU Stainless Steel Price
EU Stainless Steel Price Index
Asia Stainless Steel Price
Asia Stainless Steel Price Index
North American Stainless Steel Price
North American Stainless Steel Price Index
Home > MEPS Steel News - 21.09.2015

IMPORTS DRIVE EU STEEL PRICES DOWNWARDS IN SEPTEMBER – MEPS INTERNATIONAL LTD

Despite strengthening demand in a number of west European countries, flat product domestic selling values are being negatively influenced by the availability of very low-priced third country import offers. Cheaper raw material and energy costs are contributing to the situation. Market sources are quite pessimistic about the coming months. As a result, buyers expect further price reductions.

In Germany, the auto sector continues to perform well but has slowed a little, as a result of a fall in sales to China, brought about by currency exchange rate changes. The construction industry is also slowing as the winter season approaches. Service centre stocks are quite full after the holidays. However, end-users are only taking what they need for immediate use, as they anticipate even lower prices in the future. Consequently, resale values are under pressure.

The French market was muted at the beginning of September. Activity was expected to pick up, slightly, towards the end of the month, due to restocking. Market participants foresee their order books at similar levels to those in previous months. They believe that the difficult situation in China and other regions represent a threat. Producers have tried to resist negative price pressure with mixed results.

The Italian steel market has deteriorated over the summer, leading to feelings of insecurity amongst buyers and sellers alike, despite signs of some small recovery in the general economic situation. Cheap imported material is the major disruptive factor. On the demand side, the auto sector is performing well, thanks to investment in new models. The mechanical engineering segment saw some improvements at the start of the summer. Service centres report that their sales volumes are positive, compared with earlier in the year, but resale prices are poor. Competition in that sector is severe.

In the UK, distributors report that demand has remained good but that their buying prices have fallen, for the fourth quarter. Resale values have moved down, slowly and steadily, in tandem with mill figures. Service centre inventories are low relative to demand. Traders’ stocks at the docks are also depleted as caution prevails.

Prices remain on a slow, downward trend in Belgium. Turkish and Chinese imports are available. Even if customers do not purchase this cheap material, because of the long delivery lead time involved, they use the low figures in negotiations with their European suppliers in order to obtain discounts. Companies do not need to build stocks as steel can be acquired very quickly.

A massive increase in the availability of cheap third country imports occurred in the Spanish market during the summer. This has led to a series of domestic basis price reductions for November rollings of all flat products. As there is still a large differential between local and foreign figures, buyers expect further discounting for December. Underlying demand is reasonable. There has been a sharp impact on distributors’ resale values since July. Margins have been squeezed.




Source:
MEPS - European Steel Review - September 2015 Issue

Also See: MEPS - EU Steel Prices Online

 

 

Sign up for free MEPS steel news alerts

Enter e-mail address *Required

Name:      


Company: 
If you are a journalist please tick here:       


MEPS International Ltd - Serving the Global Community