GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD
Many German hot rolled coil
customers, especially the service centres, are asking for discounts
on selling figures, according to MEPS. Distributors are still
struggling with low resale prices because of overcapacity in that
sector. The quantities of Russian material have reduced but there is
more competition from Brazilian mills.
Hot rolled plate distributors are competing fiercely for business as
they continue to try to reduce their overblown stocks, ahead of the
summer vacation. Meanwhile, cold rolled coil domestic basis numbers
have fallen, marginally. Demand for auto sheet remains good and
sales to the general market are satisfactory. However, distributors
are struggling to make decent margins.
There are competitively-priced third country galvanised coil import
offers in the thinner gauges. Domestic figures have declined. The
auto sector continues to perform well but the carmakers will still
try to negotiate price cuts for second half, 2015 contracts, citing
the mills’ lower outlay on raw materials. Construction-related
demand has not really recovered during the spring.
During recent negotiations for sales of low carbon wire rod, German
producers have maintained the modest rise they secured in May.
Recoil values are unmoved this month. Buying activity is weak.
Activity in the structural sections market has not fully recovered,
where steelmakers have failed to secure the proposed hike. There is
strong competition for the business available. rebar customers are
purchasing only minimum requirements. Consequently, demand is slow.
The small advance, implemented last month, remains in place.
European Steel Review
- June Issue
MEPS - EU Steel
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