Business Activity Remains Lethargic, As The Summer Holiday Period
Hot rolled coil demand, in Denmark, is better than in many other
European countries, but shows little sign of improvement. Swedish
business activity is quite steady, having recovered from a downturn
during the spring. Cheap Russian slab supplies put downward pressure
on coil values, in Finland.
Demand is healthy, in the Netherlands and
market participants believe that the bottom of the current price
cycle has been reached. Construction activity is strong, in Austria,
but, in other sectors, consumption is poor. Purchasing activity is
at a low level, in Norway.
Quarterly contract prices for hot rolled plate decreased, slightly,
in Finland. Market participants in Denmark express uncertainty,
regarding the short-term future. Swedish domestic prices are stable.
In the Netherlands, demand from agricultural equipment makers is
steady, but shipbuilding activity is subdued. Sales to machinery
makers are below projected volumes, in Austria. Activity is
reasonable, in Norway.
Delivery lead times, for cold rolled coil, from EU producers, are
shrinking. Demand in Sweden is stronger than in most EU countries,
but the weak national currency is putting a strain on production
costs. Local consumption is fair, in Denmark. In Finland, activity
is slowing. Demand is healthy, in the Netherlands, but competition,
between European suppliers, is stiff. Low-priced quotations from
Eastern Europe are undermining attempts to raise prices, in Austria.
Market conditions are quite poor, in Norway.
Hot-dipped galvanised coil sales, in Denmark, Sweden and Finland,
are still being affected by the downturn in the auto industry. Sales
volumes are acceptable to steel producers, in the Netherlands, but
supply is plentiful. In Austria, sales for building-related
applications are quite healthy. Purchasing, by traditional
end-users, is modest, in Norway.
Demand for wire rod is quite stable, in Sweden. Producers have
difficulty in maintaining selling values, under the influence of the
weak European market. In Finland, buyers achieved a small cut in
prices from EU producers, while Russian suppliers raised their
offers. Transaction values in the Netherlands, Austria, Norway and
ArcelorMittal’s plan to reduce output of medium sections and beams
has, so far, failed to boost prices. Activity is slowing, in the
Danish building industry. The commercial construction sector is
quite busy, in Sweden. A lack of new projects is stifling
consumption, in Finland. Demand from the building sector is robust,
in the Netherlands. Austrian domestic activity is fair. Transaction
values, in Norway, are under negative pressure.
Sellers will struggle to lift prices for reinforcing bars until
Turkey’s EC import quota has been filled. Demand increased, in
Sweden and Denmark, before the summer slowdown. Finnish domestic
demand is at a similar level to that of one year ago. Local mills
are busy, in the Netherlands, but plenty of competition exists.
Sales volumes are fair, in Austria, notwithstanding the negative
effect of the summer vacation period. Norwegian domestic demand was
at a satisfactory level.
Danish industrial activity is quite healthy, but EU producers of
merchant bars are recording subdued sales in Western Europe.
Regional producers attempted to raise selling figures, in Finland,
but they were undermined by reduced scrap values and weak activity.
Demand is fair, in Sweden and consumption is reasonable, in the
Netherlands, but stockists’ profit margins are being eroded. Bar
values, in Austria, are affected by weak fundamentals in the wider
European market. Transaction figures, in Norway, were unchanged.
Source: MEPS -
European Steel Review
Supplement - July 2019 Issue
Also See: MEPS
All Products Composite Purchasing Price & Index
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