MEPS Nordic Average Coil
Prices Stabilise, Long Products Slip
Hot rolled coil suppliers pushed for price increases, in Denmark,
this month, but most deals were agreed at rollover figures. Regional
mills still have spare capacity for second quarter rollings. Russian
producers are offering material at competitive selling values.
Demand, from the housebuilding and manufacturing sectors, is strong,
in Sweden. However, the weakening local currency is leading to more
expensive raw materials, while export sales have become more
competitive. Consumption of hot rolled coil is fair, in Finland, but
competition is increasing. Buyers in Norway are cautious, fearing
price reductions, later in the year.
In Denmark, sales of cold rolled coil from service centres’ stock
are fair but large projects are scarce. The Swedish economy remains
strong. Housing and manufacturing activity are at a high level. The
latest price increase equates to unchanged values, in euro terms.
Order tonnages are satisfactory, in Finland, and sales are predicted
to improve, in the short term. The Norwegian economy is healthy.
Consumption of cold rolled coil is strong. However, prices are
unchanged, this month, and likely to decline, in the coming months.
Stockists, in Denmark, report a slight slowdown in consumption of
hot dipped galvanised coil by the regional automotive sector.
Nevertheless, local prices rose, in May. Swedish suppliers recorded
good sales to the automotive and building sectors. Producers are
raising selling values to take account of the weaker Swedish krona,
relative to the euro. Finnish sellers report that demand from the
auto supply chains in Germany and Sweden is consistent. In Norway,
coated coil sales, to the automotive industry and other regular
outlets, are stable.
In Denmark, prices for sections and beams are under downward
pressure from competitors in Spain and Italy, who are looking for
new markets, to replace potential lost sales to the United States.
Building sector activity is strong, in Sweden. Nevertheless, selling
values, in euro terms, are falling. Sales to the construction
industry are satisfactory, in Finland. No price cut has been
reported, in Norway, but the trend is believed to be turning
Reinforcing bar prices, in Denmark, are depressed by reduced scrap
costs and weaker-than-expected demand. Several projects have been
delayed or postponed. Delivery lead times are down to three or four
weeks. Infrastructure activity is buoyant, in Sweden. Nevertheless,
rebar values softened, in euro equivalent terms, this month.
Housebuilding activity is at a high level, in Finland.
Infrastructure demand is moderate. Market participants report an
increase in the volume of material being offered from Eastern Europe
and Russia. Sales activity is reasonable, in Norway.
Steel Review Supplement - May 2018 Edition
Also See: MEPS
Nordic Index and MEPS Nordic
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