Tag Archives: Cold Rolled Coil

Cold Rolled Coil Prices Weaken in Northern Europe

Market participants, in Denmark, report that local demand is a little weaker than in neighbouring Sweden and Germany. Cold rolled coil values softened, slightly, in May, according to MEPS.

Consumption is at a high level, in Sweden. However, prices are believed to have peaked, for now.

Purchase volumes are satisfactory, in Finland. The price trend is thought to have reached the top of the current cycle but MEPS has no reports of reductions, as yet.

Sales tonnages are high, in the Netherlands. Offers from China are competitive, even after the application of antidumping duties. Quotations from India and South Korea are also attractive.

In Norway, business activity levels are good but cold rolled coil prices are under negative pressure.

Source: European Steel Review Supplement – May Edition

NORDIC STEEL MARKET ROUNDUP FROM MEPS

According to MEPS, demand for hot rolled coil is steady across the Nordic region. Total sales tonnages in 2016, so far, exceed those in the same period last year.

Hot rolled plate prices are stable, at present. Buyers do not foresee substantial increases before the end of this year. In Sweden, demand from the commercial vehicle and building sectors is strong.

Regional producers’ strong order loads are putting upward pressure on cold rolled coil selling figures. Buyers believe that they will have to concede some part of the mills’ proposed price increase.

Galvanised coil sellers report continued good sales to the automotive supply chain. Supply is limited, in Europe, due to earlier mill outages. Chinese material is available but some buyers are cautious regarding its quality.

Excess wire rod production capacity persists, in Europe. Order intake is quite slow. No dramatic change in market conditions is foreseen.

Demand for structural sections is strong from the construction sector. However, after steep increases during the second quarter, selling figures are now following raw material costs, on a downward trend.

Merchant bar transaction values continued on a downward trend and may yet have further to slide. Sluggish consumption and decreased input costs contributed to the fall in prices.

Source: European Steel Review Supplement – September Edition

US STAINLESS STEEL MARKET ROUNDUP FROM MEPS

Business remains slow for hot rolled coil and plate, in the United States, according to MEPS. Demand from the energy sector is weak. Fabricators supplying equipment to the chemical and pharmaceutical industries face competition from Asian suppliers. It is difficult for sellers of hot rolled plate to achieve profitable prices.

Cold rolled coil purchasing activity remains subdued. We have few reports of any pickup in buying ahead of the inevitable slowdown as the year-end approaches. Delivery lead times, from the mills, are short.

Stainless steel bar sellers, in the United States, report weak demand from all sectors. Supply chain participants are seeking to minimise their inventories for the year-end. Stock levels are already low, by normal standards but they are in line with the current, modest sales volumes. US consumption of stainless steel long products, in the year to date, is reported to be 8 to 10 percent down on the corresponding figure twelve months ago. There is no recovery indicated for the early part of 2016.

Source: MEPS – Stainless Steel Review – October Issue

EU STAINLESS STEEL MARKET ROUNDUP FROM MEPS

Stainless hot rolled coil and plate demand is weak in Western Europe. The market has been subdued, in Italy, since the end of the summer holidays. Market basis figures have slipped, despite the efforts of some EU mills to lift them.

The UK plate market continues to subside. Business has failed to pick up following the summer vacation period. With the price believed to be close to the bottom of the current cycle, the subdued buying activity suggests a lack of confidence in future demand. Post-holiday purchase volumes are also poor in Spain and transaction values keep falling.

Buyers in Western Europe comment that the effect of the EU antidumping measures against cold rolled material from China and Taiwan has been dampened by excess production capacity and poor demand in the region. There have been small reductions to domestic basis numbers, for this product, in Italy.

Sales activity for cold rolled coil was higher than expected, in September, in the UK but has dropped off substantially since then. Demand is poor – described by one market participant as “like a recession”. The antidumping measures are failing to have a positive effect on local selling values in Spain.

Source: MEPS – Stainless Steel Review – September Issue

SEPTEMBER STAINLESS STEEL PRICES UNDER NEGATIVE PRESSURE

The global stainless steel market is very subdued, at present. Purchasing activity has not picked up following the summer holiday season, in most parts of the world. Demand is weak, supply is plentiful and falling prices have made buyers more cautious.

Consumption is muted, in the industrialised regions. Statistical indicators suggest that economic growth is moving in a positive direction, in the West. However, this is not reflected in demand from the major stainless steel consuming sectors. The low oil price has brought about substantial cuts in investment in exploration and extraction. Constraints to government spending, in a world of post-financial crisis austerity, have resulted in limited infrastructure development. Depressed demand from consumers has had a negative effect on manufacturing and this, in turn, has restricted producers’ willingness to expand.

Since the global crash, there has been overcapacity, relative to demand, in the stainless steel producing regions of North America, Europe and the Far East. This has been exacerbated by the enormous increase in stainless steelmaking facilities in China. Crude stainless steel output in the country has more than quadrupled in the past decade – growing, in the process, from 18.5 percent of the world’s production in 2006 to 52 percent last year.

As the rate of economic growth has slowed, recently, in China, the global excess availability of stainless steel has been magnified. Competition between suppliers has become more intense, with the inevitable, negative effect on prices.

Falling raw material costs have had a further influence on stainless steel transaction values. The LME nickel cash figure has been on a downward trend, losing more than half of its value since peaking in May 2014. This has contributed to European alloy surcharges for grade 304, for example, dropping by around 25 percent, since last October.

On a more positive note, MEPS predicts that nickel values have reached a “floor” and will remain stable during the final months of this year, before recording moderate gains during the first half of 2015.

Source: MEPS Stainless Steel Review

TAIWAN STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

In Taiwan, the negative price tendency, for hot rolled coil, accelerated markedly in August, according to MEPS. Trading activity continued to be muted and import competition remained strong.

Sales of cold rolled coil continued to be lacklustre in the domestic market. Buyers secured further concessions. Meanwhile, galvanised coil demand was tepid. The threat from third country imports remained. During recent settlements, buyers secured substantial discounts.

Taiwanese rebar transaction values decreased for the fourth consecutive month. Selling figures came under negative pressure from reduced raw material costs and cheap Chinese billet. In late August, the price of scrap started to climb, which could enable producers to, at least, stem any further downward movement in rebar in the short term. A modest increase may even prove possible.

Source: MEPS International Steel Review – August Issue