Tag Archives: Medium Sections

Medium Sections and Rebar Prices Rise in Northern Europe

Steel beam selling values increased, in Denmark, this month, buoyed by rising scrap costs. Consumption is satisfactory. Delivery lead times, from regional mills, are between four and six weeks. Private and public sector housebuilding activity is at a high level, in Sweden. Demand for apartments, for young people, is growing. A sharp, upward steel price hike, in Finland, was buoyed by increased scrap expenditure and healthy sales volumes. Beam selling figures were lifted, in late December, in the Netherlands. Further increments are expected. Construction activity is strong, in Norway. This helped to boost ex-mill values for sections, this month.

Rising scrap costs contributed to increasing rebar prices, in Denmark, in January. The mild winter, so far, has allowed infrastructure projects to proceed – resulting in healthy rebar consumption. The construction sector is busy, in Sweden, without serious disruption from the weather. Substantial rebar price hikes arose from strong demand and soaring scrap outlay. Sales picked up, in January, in Finland, following a seasonal slowdown, in December. Growing raw material expenditure, for the mills, supported increasing rebar values. Distributors succeeded in passing price hikes on to end-users. Material from Russian producers is cheap but offers from southern European mills are becoming less competitive. The Netherlands economy is booming – especially the housing sector. EU mills are busy. Turkish suppliers are present, in the market, but their offers are not attractive. Construction and infrastructure activity is at a high level, in Norway.

Source: European Steel Review Supplement – January 2018 Edition

INDIAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

Sales volumes for hot rolled coil have slowed down in India’s northern and central states according to MEPS (International) Ltd. Stockists operating in these regions have begun to offer additional discounts to facilitate deals. Offers from Asian suppliers of commercial grade coil for August shipment stood at US$535/550 per tonne CFR (excluding 7.5 percent import duty and port Developing Markets Steel Reviewhandling expenses).

Quotations from Asian hot rolled plate suppliers for August shipment stood at US$540/550 per tonne CFR (excluding import duty).

During recent negotiations, customers and suppliers agreed a rollover of June’s cold rolled coil figures. Quotations from Asian steel suppliers, for August delivery, stood at US$600/610 per tonne CFR (excluding 7.5 percent import duty and port handling expenses) – down 2.4 percent, month-on-month.

Hot dipped galvanised coil producers have kept selling values at the level established in June. Primary steelmakers have expressed concerns over the government’s decision to impose an import duty of 2.5 percent on metallurgical coking coil. Previously, there was no duty on this key steelmaking raw material.

Procurement activity of wire rod has, on average, fallen by 30 percent. However, transaction values have been support by high billet and ferrous scrap prices. Rashtriya Ispat Nigam Limited (RINL) has elected to increase its July basis selling figure to Rs42,230 per tonne (excluding all taxes). The adjustment has been blamed on the higher cost of domestic iron ore and a recent hike in railway freight charges.

Buying sentiment is unchanged for medium sections and beams. Monsoon rains have restricted construction activity in the central, northern and southern states.

Procurement activity for reinforcing bar has been restricted by the onset of the monsoon season and high inventory levels. Steel production in Andhra Pradesh and Telangana has been unsettled by high electricity tariffs and power shortages.

The business environment has begun to soften for merchant bar. Meanwhile, the government has maintained the import duty on structural steel products at 5.0 percent.

Source: MEPS – Developing Markets Steel Review – July issue