EU FLAT PRODUCT STEEL PRICE
ROUNDUP FROM MEPS
German basis values rose, in August/September,
due to limitations on the amount of material available from both
European and overseas producers. According to the latest edition of
MEPS European Steel Review, supply remains restricted, especially
for coated products, with delivery lead times out to the year-end
and beyond. Service centre stocks are reducing quickly as a number
of end-users, who would normally place direct business with the
mill, are buying from distributors in order to access steel more
Italian service centres report supply tightness. However, their
margins continue to be squeezed. For the moment, customers are
reluctant to pay more. The distribution sector has too much capacity
and a number of stockists are still selling quite aggressively.
In the UK, the majority of strip mill product prices advanced, this
month, as continental European producers lifted basis values to
offset the weaker pound sterling. Suppliers are now talking of an
additional rise. Most distributors are applying the mill increases,
so margins are acceptable. Stocks are low due to supply shortfalls.
We detect little availability from traders.
Belgian buyers stated that the push for higher prices does not
reflect any similar growth in demand, although service centre sales
are reasonably good. Mill order books, for most strip mill products,
are full to December, or even beyond. Quantities are very limited
and there are delays on already long delivery lead times.
Distributors report that the higher mill prices cannot be applied to
resale values in all cases.
A perceived lack of availability led to higher basis numbers in
Spain. Service centres are concerned that their customers will only
partially accept the mill rise. Some buyers anticipate that the
supply issues may be resolved by the first quarter 2017. Not least,
because competitively-priced imports are on offer from a number of
third country sources, not affected by antidumping measures.
Source: MEPS -
European Steel Review
- September 2016 Issue
MEPS - EU Steel
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