MEPS – COIL PRICES
EXPECTED TO CONTINUE RISING IN NORDIC REGION
According to MEPS, business
activity for hot rolled coil is stable across the Nordic region. The
mills’ attempts to lift selling values were largely successful, in
October. We expect that upward price pressure will be increased by
the announcement of European Union antidumping measures against
Chinese hot rolled coil and plate.
Consumption of hot rolled plate is quite weak. Demand from bus and
truck manufacturers is good but the agricultural equipment and oil
and gas sectors are not strong. Antidumping action against Chinese
suppliers may introduce upward price pressure in the short term.
Western European mills report that their cold rolling schedules are
full, through to the end of the year. This has helped producers in
northern Europe secure increases. Delivery lead times are longer
Hot dipped galvanised material is in quite short supply.
Consequently, the mills have managed to raise prices in October.
Demand from car makers continues to be strong.
Purchasing activity for wire rod is slower than expected. However
sellers are optimistic that demand will pick up in the near future.
Producers from southern Europe have become more active in the
market. Prices could slide further but no dramatic fall is
Demand for structural sections is quite weak, for the time of year.
Scrap costs are low. Beam prices continue to drop back, following
the steep rise earlier in the year. Consumption by the construction
sector is fair.
Consumption of rebar is reasonable. However, prices continue to fall
steeply. Buyers speak of offers from new suppliers in Russia and
Spain. This, combined with low scrap costs, is putting downward
pressure on selling figures.
Steel Review Supplement - October Edition
Also See: MEPS
Nordic Index and MEPS Nordic
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