Producers Attempt to
Reverse Price Trend but Buyers Resist
Industrial activity and steel consumption are stronger, generally,
in Scandinavia, than in the rest of Europe. Regional producers
attempted to reverse the negative price tendency, and improve their
profitability, by introducing increased selling values, for coils,
sheets and plates, in June. Buyers, however, took a different view,
and small price reductions were recorded, for most products, in the
The poor regional sales environment kept hot rolled coil prices on a
downward trend, in Denmark. Swedish purchasing activity is quite
stable. Distributors, in Finland, are reported to be selling
cheaply, in an effort to reduce their inventories. In the
Netherlands, sales volumes are below forecast levels but transaction
values appear to have bottomed out. European mill output cuts are
having little effect on the Austrian market. Norwegian domestic
sales are strong.
Danish end-user demand for hot rolled plate remains subdued. The
Finnish market is quite strong. Demand is solid but unspectacular,
in the Netherlands. In Austria, a small decline in transaction
values was reported.
Cold rolled coil selling values remain on a negative path, despite
European mill production cuts. Market participants believe that
increased demand will be needed, to lift prices, following the
summer holiday season. Finnish market activity is likely to reduce,
significantly, as the summer vacation period approaches. Mill
delivery lead times are stretching, in the Netherlands. Buying is
weak, in Austria. Purchase volumes, in the Norwegian home market,
Sales of coated sheet and coil to the automotive sectors remain
subdued. Prices, in Denmark, continue to be on a downward curve. In
Sweden, sales to non-residential building projects are healthy.
European mills were unable to lift selling values, this month, in
Norway, but increases are expected.
Demand for wire rod, from Swedish end-users, is strong. Orders from
manufacturers are less robust, in Finland. Mill delivery lead times
are short, and material is plentiful. Low sales volumes are
expected, in the third quarter, due to widespread holidays and plant
maintenance stoppages. The next tranche of EC steel quota
availability will put more imported material onto the market, in
July. Demand is inconsistent, in the Netherlands.
Beam prices remain under negative pressure, in Denmark. Steelmakers
are reducing their output but Norwegian buyers report capacity
available on imminent rolling programmes. Commercial building
activity is at a good level, in Sweden. Demand from the building
sector, in Finland, is quite weak. Sales volumes are satisfactory,
in the Netherlands, and EU mills are pushing for increases.
Construction activity is at a low level, in Austria.
Domestic reinforcing bar demand is fair, in Denmark, but regional
consumption is weak. Sales, for infrastructure and non-residential
building projects, are strong, in Sweden. Transaction values
declined, in the Netherlands, in June. Austrian domestic prices
decreased, amidst disappointing construction and infrastructure
Danish buyers of merchant bars report modest order loads, on
regional mills. Weak demand, in northern Europe, is having a
negative effect on selling values. Supply chain participants believe
that a substantial upturn in demand would be required to reverse the
existing price trend.
Source: MEPS -
European Steel Review
Supplement - June 2019 Issue
Also See: MEPS
All Products Composite Purchasing Price & Index
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