EU Flat Product Prices
Poised to Move Up
A degree of restocking is taking place, in the
German market, as service centres sell off their excess inventories,
accumulated earlier in the year. Availability, from domestic
sources, is good. Underlying steel consumption is robust. New offers
from third country suppliers are less competitive than in June.
However, plenty of attractively priced material is still available,
in standard grades/sizes, at the docks. The domestic price trend
continued to be negative, this month, but buyers feel that the
bottom of the cycle has been reached.
Activity, in France, picked up, in June. Market participants expect
a boost in steel orders, in the second half of the year, from a
planned large infrastructure project around Paris. Nonetheless,
prices continued to go down, in late June, but appeared to be
stabilising at the beginning of July. In the distribution sector,
competition is still rife, with low resale prices. Third country
imports are less competitive than they were a couple of weeks ago.
In Italy, stocks at the end-users and distributors are plentiful but
significantly lower than in recent months. Import pressure remained
strong in late June, although overseas price offers have started to
rise. Domestic values continued to contract until early July, when
the negative movement stalled. Buyers are now considering purchases
for deliveries in the autumn.
The Spanish manufacturing sector completed a strong second quarter
of the year and steel consumption is good. Even so, overstocking and
the availability of cheap imports led to a reduction in domestic
values, in late June. Since then, positive price pressure has been
detected in the market. Import quotations moved up and are expected
to rise further when new offers resume. Moreover, domestic
steelmakers are refusing to accept further orders at today’s level.
Mill delivery lead times are now shorter than those from overseas
sources. Stocks at service centres remain high but destocking is
Source: MEPS -
European Steel Review
- July 2017 Issue
All Products Composite Purchasing Price & Index
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