NORDIC STEEL MARKET
ROUNDUP FROM MEPS
Market demand for hot rolled
is currently fair in the Nordic region, according to MEPS. However,
a substantial pickup in consumption is not envisaged in the short
term. There is plenty of material available.
Healthy macroeconomic figures are not reflected by demand for
commodity plate. Order volumes are subdued and there is a limited
number of projects underway. There is downward pressure on
transaction values. Inventory levels at service centres have
increased, in Finland, because sales tonnages have been below
expectations. In Norway, demand from offshore projects has been
reduced, albeit not dramatically.
Attempts to lift cold rolled coil selling values have been
undermined by low costs for raw materials, consumables and energy.
Demand remains flat. Market participants foresee no significant
improvement in purchasing activity in the near term.
Competition between coated coil suppliers is intense. Demand from
the automotive sector remains quite strong while activity in many
other industries is subdued. Prices may come under negative pressure
around the summer break.
The market for drawing quality wire rod is quite stable, in the
Nordic countries. The level of demand is described as satisfactory,
if a little subdued. Little change is predicted in the near term.
A reported shortage of scrap has not resulted in restricted
production of structural sections and beams. A seasonal upturn in
consumption has been detected. Producers attempted to raise prices
on the back of higher scrap costs. However, they have had limited
success, so far.
Rebar consumption has increased with numerous building projects
going ahead. Suppliers predict a seasonal pickup in demand during
May and June. Producers’ efforts to lift prices, in Norway, have
been complicated by fluctuations in the krone to euro exchange rate.
Demand for merchant bar is not strong enough to support the mills’
proposed price advances. Sales to the automotive sector are robust.
Activity in other industries is less buoyant. In Finland, the usual,
seasonal upturn in sales tonnages during the second quarter has, so
far, failed to materialise. Demand is subdued, in Norway. This is
likely to persist until there is some recovery in the offshore oil
and gas industry.
Steel Review Supplement - May Edition
Also See: MEPS
Nordic Index and MEPS Nordic
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