Coil Prices Approach Bottom in the Nordic Region, Upturn Expected Soon

According to MEPS, hot rolled coil prices decreased, in Denmark, in July, compared with the previous month. Stockists have plenty of material and can wait until after the summer break to place substantial orders. Spot values continued to fall, this month, in Sweden. In Finland, hot rolled coil sales activity is at a higher level than is usual, at this point in the summer. Order volumes are fluctuating, in Norway. A slowdown is expected, around the summer holidays. The building industry remains busy.

The Danish economy is quite healthy but purchasing of cold rolled coil is slowing as the summer holiday season begins. Several stockists are buying only to fill holes in their inventories. Spot prices fell, during the past month, in Sweden. However, with strong demand and rising mill input costs, MEPS predicts an upturn in selling values, after the summer break. Cold rolled coil purchase volumes are holding up, in Finland. Industrial activity is increasing, in Norway. Mill delivery lead times are stretching and will be further affected by the summer shutdowns.

In Denmark, coated coil sales volumes to the automotive supply chains, in northern Europe, are good. Nevertheless, supply has loosened, a little, and prices slipped, this month. In Sweden, consumption by the local car industry remains very strong. The price cut, for July, will probably be the last, for a while. In Finland, sales tonnages, to car makers and their suppliers, in nearby countries, are very satisfactory. Sales are steady, in Norway. Selling values are unchanged, this month.

Source: European Steel Review Supplement – July Edition