Steel Price News from MEPS International Ltd.
Home Company Profile Steel Industry Analysis MEPS Publications
MEPS Steel Prices Online MEPS Steel Reports Online MEPS Industrial Sector Steel Price Index

Company Profile
Steel Industry Analysis
MEPS Steel Publications
MEPS World Steel Prices
Request Free Publications
MEPS Index Steel Prices
Subscribe to Publications
Steel Statistics
MEPS Steel News
Industry News
MEPS Sponsored Events
Steel Links
Subscription Rates
Add Link To Website
Contact Us
Site Map
World Carbon Steel Price
World Carbon Steel Price Index
EU Carbon Steel Price
EU Carbon Steel Price Index
Asia Carbon Steel Price
Asia Carbon Steel Price Index
North American Carbon Steel Price
North American Carbon Steel Price Index
Flat & Long Carbon Steel Price
Flat & Long Carbon Steel Price Index
All Products Composite Steel Price & Index
Stainless Steel World Price
Stainless Steel World Price Index
EU Stainless Steel Price
EU Stainless Steel Price Index
Asia Stainless Steel Price
Asia Stainless Steel Price Index
North American Stainless Steel Price
North American Stainless Steel Price Index
Home > MEPS Steel News - 21.11.2019

Weak Demand Prompts Further Capacity Cuts As Producers Seek To Recover Costs

Excess production capacity persists within the Nordic and Western European flat steel products markets. Idling of blast furnaces and ArcelorMittal’s withdrawal from its takeover of the Ilva facility may go some way to addressing this issue. Monthly contract or spot prices continued to fall during November. However, supply chain participants believe that the bottom of the current price cycle is close.

Hot rolled coil sales volumes are fair, in Denmark, but end-users, in the wider region, report falling order tonnages. Inventories, within the supply chain, are high, in Sweden and Norway. Local demand is mediocre, in Finland and the Netherlands. Austrian selling figures are on a downward trend, affected by poor sales and recent drops in scrap costs.

Transaction values for hot rolled plate, in Denmark and Finland, fell again, in November. Subdued end-user demand is exacerbated by buyers’ caution, due to future price trend uncertainty. Swedish consumption remains disappointing. Shipbuilding activity is satisfactory, in the Netherlands, but demand from agricultural equipment manufacturers is poor. The Austrian market remains muted. In Norway, demand from the offshore oil and gas sector is strong but a slowdown is foreseen, in 2020.

Producers of cold rolled coil are expected to seek price increases soon, although they may not achieve these until February or March 2020. Danish prices slipped again, in November. In Sweden, sales of commercial grades are satisfactory. Consumption is moderate, but reducing, in Finland. Distributors, in the Netherlands, are minimising their stock levels ahead of the calendar year-end. Austrian suppliers report a lack of orders for first quarter 2020 delivery. In Norway, delivery lead times, from regional mills, are very short.

Depressed activity in the auto supply chain continues to inhibit demand for coated sheet and coil in Sweden, Denmark and the Netherlands. In Finland, offers from Russian suppliers are very aggressive but delivery promises are known to be unreliable. In Austria, sales to building-related applications are healthy. Lacklustre consumption contributed to a small price cut, in Norway.

Drawing quality wire rod sales volumes remain reasonable, in Sweden. A “year-end effect” is being experienced in Finland, as customers consume their inventories rather than placing new orders. Transaction values were unchanged, in local currency terms, in all the other countries surveyed, in November.

Regional mills report satisfactory order loads for medium sections and beams, although it remains possible to book some December rollings. Stiff competition, amongst supply chain participants, continues to push beam prices downward, in Sweden and Denmark. Construction activity is cooling, in Finland and the Netherlands, but remains quite busy, in Austria. Demand is fair, in Norway.

The seasonal slowdown in the reinforcing bar sector has begun but Scandinavian demand remains better than that in the rest of Europe. Reasonable consumption continues, in Finland, with projects in wind power, mining and the manufacturing sector. Producers may seek increased prices soon, in the Netherlands, following the recent rebound in scrap costs. Selling values softened, this month, in Austria, due to low raw material outlay and weak demand. Activity is fair, in Norway,

Domestic demand for merchant bars is steady, at a low level, in Denmark. In Sweden, sales to automotive and other manufacturers are weak. Local purchase volumes are fair, in Finland, but exports to Germany have decreased. In the Netherlands, regional mills are beginning to propose price increases. Weak demand and depressed raw material costs prevail, in Austria. Manufacturing activity is subdued, in Norway.

MEPS - European Steel Review Supplement - November 2019 Issue

Also See: MEPS All Products Composite Purchasing Price & Index




Sign up to FREE MEPS News Alerts


Please select the way you would like to hear from MEPS International Ltd.:

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.



MEPS International Ltd.