NORDIC STEEL MARKET
ROUNDUP FROM MEPS
Purchasing activity in
northern Europe is starting to slow ahead of the winter break,
according to MEPS. Mill order intake of hot rolled coil is unlikely
to pick up during the final quarter. Customers want to minimise
their inventories for the year-end. Prices are weakening.
Cold rolled coil producers are not, as yet, pushing for higher
prices in the new year. Raw material costs have fallen, putting
downward pressure on steelmakers in upcoming negotiations. Prices in
Norway have risen, in kroner, reflecting the weakening local
currency. Distributors find it difficult to pass such increases on
to their customers.
Demand for commodity plate is subdued. There is plenty of material
available. Distributors are rationalising their structures, to adapt
to the prevailing business situation. Selling figures are holding
up, in Norway. Imported Russian plates, whose values are complicated
by both the rouble and US dollar exchange rates, are now more
expensive, in Norwegian kroner, than they were in the summer.
Order volumes for drawing quality wire rod are quite healthy.
Industrial activity continues at a satisfactory level - stronger
than in most of Western Europe. Selling values are unchanged in
November, in euro terms, in all the countries reviewed. Structural
section sales volumes are fair. Building activity continues at a
good pace because the weather has remained mild, so far. Lower raw
material costs are starting to exert negative pressure on
Low scrap costs are likely to have a negative effect on rebar prices
in the near term. Activity levels remain good, aided by the
continuing fine weather. Merchant bar prices have fallen in November
reflecting poor demand. There are no indications that consumption
will pick up in the near future. Demand from the manufacturing
sector is slowing.
Steel Review Supplement - November Edition
Also See: MEPS
Nordic Index and MEPS Nordic
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