UK STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
Hot rolled coil figures, in the
UK, are under negative pressure, according to MEPS. Delivery lead
times are relatively short. There is strong import competition from
Commodity plate figures have weakened, since September. Third
country offers are placing pressure on domestic selling figures.
Customers are reluctant to purchase Chinese plate because of its
high chromium content. Distributors note that, overall, day-to-day
sales volumes remain poor. Consumption by the mining, oil and gas
industries has declined considerably.
Coated coil transaction values are down since September. The vehicle
sector is healthy, although Land Rover and Jaguar’s order books have
dropped because of reduced exports to China. Distributors are busy
with sales to the building industry.
Prices for low carbon wire rod dipped over the last four weeks. The
high carbon grades are holding up better. Mesh quality selling
values have fallen due to lower scrap prices. Sales to the building
sector are healthy.
Demand for structural sections, in September, was quieter than many
distributors envisaged. Resale prices continue to slide, ahead of
perceived mill decreases as stockholders try to move inventories.
There is overcapacity in this sector. Negative pressure exists due
to the availability of cheap raw materials.
Rebar demand is fairly stable at a good level. The issue is one of
oversupply. Chinese material, ordered earlier in 2015, is still
arriving. However, the appetite for forward orders, despite ever
reducing price offers, has diminished because of the ongoing
The negative pressure on merchant bar selling values persists,
despite reasonable demand, which has not really changed since 2014.
The downward price trend is creating problems for distributors
because of the continual devaluation of their stocks. The main
import threat is mainly from European sources.
Source: MEPS -
European Steel Review
- October 2015 Issue
MEPS - EU Steel
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