NORDIC STEEL PRICES STRONGER THAN REST OF EUROPE - MEPS

Flat products prices in most of Europe have slipped slightly from a peak in June, although third quarter contract values in Scandinavia are higher than spot figures in mainland Europe. This has been supported by a stronger than average economic recovery in the Nordic countries, especially Sweden. However, consumption across Europe is not anticipated to pick up quickly. There is a widely held view that steel makers will need to cut production in order to balance supply with demand and support prices.

Long products prices have generally fallen in northern Europe this month - especially those which, like rebar, are most directly influenced by the cost of ferrous scrap. Sales volumes, though, have held up surprisingly well in the run up to the summer stoppages.

The stainless steel market is quiet due to the impending vacation and nervousness regarding nickel values. Sales activity was reasonable in June despite the anticipation of low alloy surcharges in July. Consumption by the automotive and engineering industries is good but most steel makers can see no orders beyond September/October. Some Scandinavian suppliers sold reasonable tonnages in June, thanks to increasing demand from the shipbuilding and offshore sectors. Observers are cautiously optimistic about activity in the second half of 2010

Source: European Steel Review Supplement - EU STEEL PRICES