Category Archives: German Steel Prices

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.

Source: MEPS – European Steel Review – June Issue

GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

According to MEPS, market activity in Germany was quiet in February. Customers had no urgent need to purchase.

Basis hot rolled coil figures were unchanged in February, compared with the previous month. Steelmakers were unable to implement their announced rise. The weakening euro was beneficial for the pipemakers, who were able to obtain overseas orders. Having conceded discounts in January, plate producers held on to those figures during negotiations in the following month.

Demand for cold rolled coil failed to recover, with the exception of auto sheet. Distributors struggled to make acceptable profits. Meanwhile sales of coated coil to car manufacturers continued to perform very well. However, demand from the construction sector was stagnant.Drawing quality wire rod selling figures were unchanged month-on-month. Recoil values have succumbed to further negative pressure as scrap prices have not firmed.

Beam producers were able to lift effective values in February, despite strong competition for the little business available. The construction outlook is better for later in the year.

Domestic rebar producers tried to boost prices, based on a lack of import availability. However, resistance from customers was high because they were unable to pass on any increases. Negotiations were fierce.

After finally stabilising merchant bar prices in January, mills secured a small increase in February. However, purchasing activity remained cautious as some buyers felt the negative trend may return.

Source: MEPS – European Steel Review – February Issue

GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

According to the latest report by MEPS, there has been no movement in German hot rolled coil basis prices. In general, steelmakers still have capacity available for the fourth quarter. Pipemakers report that their business is not improving. Order quantities are reasonable but profit margins are lacking due to world-wide competition. Distributors are trying to reduce hot rolled coil stocks for the year-end. We hear that some service centres have already finalised their January business at a rollover price from the fourth quarter.

Recent statistics show that inventories of hot rolled plate at stockists are growing and sales volumes have fallen. The general economic outlook is less optimistic than of late, partly due to the Ukrainian problem, causing investors to hold back. Commodity plate values are unchanged from those reported in October.

Cold rolled coil domestic suppliers have cut their final quarter offers. There has been no revival in demand since the summer vacation and mill order books are lean. Local auto manufacturers have experienced a sharp drop in sales to Russia but premium car exports to other countries are holding up. Construction-related sales of hot dipped galvanised coil are static. Basis numbers in the general market have not recovered due to oversupply.

Domestic mills have maintained low carbon wire rod prices this month, after conceding a small discount in October. There is little activity in the recoil market, where values are, again, unchanged, despite negative pressure from declining scrap costs.

Sales volumes of structural sections are poor, where there is strong competition for the little business that is available. Nevertheless, suppliers have held on to prices during recent negotiations, after trimming them last month.

Rebar buyers have successfully pushed for lower prices as scrap costs drop further. The market is subdued. Merchant bar steelmakers have failed to resist customers’ calls for basis price cuts, for the second consecutive month. Purchasing activity remains cautious as buyers fear further downward developments. There has been no recovery in business levels.

Source: MEPS – European Steel Review – November Issue

GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

According to MEPS, general demand in the German hot rolled coil market is flat, although the pipemakers are enjoying satisfactory order books. Steelmakers have failed to lift fourth quarter basis values. Most big users have now finalised their business for the October/December period

Hot rolled plate stock levels are stable, where distributors’ sales are climbing. The general business outlook is mixed, partly due to the Ukrainian problem and, therefore, investors are holding back. Nevertheless, commodity plate values have advanced a little since our last report.

Domestic suppliers have not implemented their proposed final quarter hike, for cold rolled coil, as there has been no revival in demand since the summer vacation. Construction-related sales of hot dipped galvanised coil are static. In the general market, basis numbers have not recovered due to oversupply. The German vehicle manufacturers continue to try to reduce their steel costs wherever possible, as they struggle with declining export sales.

After six months of level pricing, low carbon wire rod mills have conceded a small discount during recent negotiations. There is little activity in the recoil market, where values are, again, unchanged although there is negative pressure from declining scrap costs.

There is strong competition amidst subdued purchasing activity in the structural sections market. Suppliers have been forced to trim prices to try to stimulate buying interest.

Rebar demand is subdued and there was renewed negative pressure as scrap costs continued to tumble. Producers have lost half the increase secured in September.

The mills have failed to resist customers’ demands for merchant bar basis cuts. Purchasing activity remains cautious as buyers are still unsure of future price movements. There has been no improvement in business levels.

Source: MEPS – European Steel Review – October Issue

GERMAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

There has been some downward pressure detected in the German hot rolled coil market, according to MEPS. A number of service centres have financial difficulties as end-users press for reductions. Consequently, they in turn, are calling for discounts from the mills.European Steel Review

MEPS has noted a small downward price correction for commodity plate. However, recent statistics have revealed that stocks at the service centres fell during May by over 5 percent, month-on-month, and that the quantities sold by distributors were up by around 9 percent.

Cold rolled coil demand remains satisfactory but, with the exception of the auto industry, there is no significant improvement. There is plenty of Russian material on offer but domestic suppliers have maintained basis figures at the June level.

Auto production is going well with good local sales and a healthy export market, especially in China and the USA. However, the carmakers are trying to reduce their steel costs wherever possible, so distributors who serve that sector complain of poor margins. Construction related sales of hot dipped galvanised coil are fair. In the general market, basis numbers have weakened slightly, due to oversupply.

Low carbon wire rod producers have held on to selling figures for the fourth consecutive month. There is little activity in the recoil market, where values are unchanged, despite buyers’ calls for discounts.

In the structural sections market, suppliers have been forced to concede a €20 per tonne discount during recent settlements. Sales are subdued and supply is in excess of demand.

Rebar prices are unchanged from a month ago. Sales volumes are running at reasonable levels, with construction output forecast to grow throughout 2014.

The mills have again succumbed to calls for further discounts for merchant bar. Purchasing activity is cautious as buyers are unsure of future price movements. The hope for improvement in business levels has not materialised, so far.

Source: MEPS European Steel Review