NORTH EUROPEAN STEEL PRICES START TO RISE – MEPS

The MEPS Nordic Average Strip Mill Price increased in January – the first gain for ten months. There has been little indication of a pickup in real demand. However, restocking and the anticipation of increasing prices have encouraged buyers to place orders.

We now detect shortages in some sizes of hot rolled coil, after purchase volumes increased in January. Although delivery lead times for cold rolled coil remain short, prices have risen slightly in most countries, this month, and further hikes are expected. There are few competitive offers from India or the Far East. Consumption by German and Swedish auto makers, which has sustained demand for coated sheet and coil, has slowed, somewhat. Basis figures for hot dipped galvanised and electro-zinc coated products are converging with those for cold rolled coil.

Applications using high specification qualities of hot rolled plate continue to thrive but weakening demand from consumers of commodity grade plate has put negative pressure on values recently. Market participants believe the cycle has bottomed out and higher prices are anticipated in the coming months.

The MEPS Nordic Average Price for long products increased in January. Construction activity has held up reasonably well recently, aided by the prolonged absence of severe wintry weather, in most of northern Europe. This has helped to sustain the demand for long products. Furthermore, scrap prices climbed steadily between early December and mid-January. Consequently, basis value increases were accepted without much resistance from buyers.

Source: European Steel Review Supplement  
Also See: MEPS Nordic Index and  MEPS Nordic Steel Prices