Hot rolled coil figures, in the UK, are under negative pressure, according to MEPS. Delivery lead times are relatively short. There is strong import competition from Turkey.
Commodity plate figures have weakened, since September. Third country offers are placing pressure on domestic selling figures. Customers are reluctant to purchase Chinese plate because of its high chromium content. Distributors note that, overall, day-to-day sales volumes remain poor. Consumption by the mining, oil and gas industries has declined considerably.
Coated coil transaction values are down since September. The vehicle sector is healthy, although Land Rover and Jaguar’s order books have dropped because of reduced exports to China. Distributors are busy with sales to the building industry.
Prices for low carbon wire rod dipped over the last four weeks. The high carbon grades are holding up better. Mesh quality selling values have fallen due to lower scrap prices. Sales to the building sector are healthy.
Demand for structural sections, in September, was quieter than many distributors envisaged. Resale prices continue to slide, ahead of perceived mill decreases as stockholders try to move inventories. There is overcapacity in this sector. Negative pressure exists due to the availability of cheap raw materials.
Rebar demand is fairly stable at a good level. The issue is one of oversupply. Chinese material, ordered earlier in 2015, is still arriving. However, the appetite for forward orders, despite ever reducing price offers, has diminished because of the ongoing anti-dumping investigation.
The negative pressure on merchant bar selling values persists, despite reasonable demand, which has not really changed since 2014. The downward price trend is creating problems for distributors because of the continual devaluation of their stocks. The main import threat is mainly from European sources.