STEEL PRICE TREND DIVERGES
IN THE EU FLAT AND LONG PRODUCTS MARKET
According to MEPS, the price direction for
European strip mill products reversed over the course of the summer.
Minor downward corrections were noted in July. Upward momentum,
which began in late August, is ongoing. Small, positive movements of
€10/20 per tonne have already been noted. ArcelorMittal announced a
rise of €40 per tonne for deliveries from November onwards. The
premium was above the levels achieved in the third quarter. Many
buyers anticipate that they may be forced to pay more in the future.
Overall consumption is largely unchanged but availability is tight
due to lack of third country import opportunities. This resulted
from planned and existing trade defence measures and higher prices
demanded by many overseas suppliers. Thus, the order load on
European steelmakers increased, leading to long delivery lead times.
Moreover, processing problems at a number of production facilities
caused short-term issues and some backlogs.
MEPS reports that European long product selling values weakened over
the summer. Current demand is not sufficient to support a price rise
in the short term. Customers are not restocking in the traditional
autumn manner. Consequently, producers are unable to fill their
rolling schedules. Discounting was noted as delivery lead times
An interesting fact is that EU steel prices
have moved by an average of 26 percent since the start of the year.
The improvement has taken place, mainly, in the flat products sector
- with price rises in excess of 35 percent since the beginning of
Source: MEPS -
European Steel Review
- September 2016 Issue
MEPS - EU Steel
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