Tag Archives: rebar

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

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

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

JAPAN STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

Japanese steelmakers kept selling values relatively stable, in July. Domestic buyers, for hot rolled coil, held off making purchases as they anticipated price reductions in the near future. Mills are trimming output due to elevated inventory levels. Export offers declined because of fierce competition from Chinese suppliers.

Import offers of commodity plate have decreased. Sales to the construction sector remained subdued. A surge in ship orders was recorded, ahead of the implementation of new regulations, for vessels ordered after July. These policy changes should benefit the steelmakers in the future.

Cold rolled coil inventories continued to be bloated. Demand from the automotive manufacturers was weak. Meanwhile, export volumes of coated coil were down, year-on-year. The hike in consumption tax, initiated in April 2014, is still depressing vehicle sales.

Inventory levels for structural sections were satisfactory and sales volumes increased. Selling figures are likely to be stable or down in the near term because of falling scrap costs and reduced seasonal demand from the construction sector, over the summer period.

Rebar customers are reluctant to pay more while scrap costs are reducing. Demand from the building industry is slowing. Meanwhile, merchant bar consumption from the civil engineering sector is forecast to increase in the fiscal year 2015.

Source: MEPS International Steel Review – July Issue

MEPS GLOBAL STEEL PRICE HAS FALLEN 24 PERCENT IN THE LAST TWELVE MONTHS

After a slight upward adjustment, last month, steel prices in most parts of the world continued on their, now familiar, downward path in June.

The reduction in the MEPS Global Steel Price is the result of fallout from the collapse in the cost of iron ore as the mining companies made huge investments in new capacity. For this reason the substantial steel selling price reductions have not been a major disaster for the world’s steel manufacturers. A significant amount of the erosion in mill revenue has been offset by a substantial decrease in the cost of steelmaking raw materials.

In the steel sector, decreasing selling prices are no guarantee of a substantial upturn in demand – particularly in an oversupplied market. When steel prices start to slide, the buyers will often postpone ordering material in the hope that lower prices will develop in the future. Inventory building is reduced, which in turn creates no discernible improvement in market size in the short term.

In the United States, GDP growth has, once again been revised upwards. It now stands at minus 0.2 percent, for the first quarter of 2015. The Purchasing Manager’s Index (PMI for manufacturing) increased last month to 52.8 – a positive sign. The majority of buyers continue to purchase only for their immediate requirements. The prospects of a substantial steel price revival are poor. The threat of cheap overseas imports is ever present.

The Canadian steel market is still moving at a slow pace. Delivery lead times from the mills are shortening. The economy is weak. Substantial quantities of imports have already arrived at the ports. Steel inventories at the OEM’s are in decline. Service centre stocks are starting to return to normal levels.

Chinese finished steel output increased in May by approximately 2 percentage points, month-on-month. The domestic market is unable to utilise such an increase in tonnage. Exports have expanded by over 30 percent, year-on-year, in the first five months of 2015 but they are insufficient to take up the excess domestic supply. Some steel mills are reportedly making a loss of 300 yuan on each tonne of steel produced.

In Japan, the local currency has weakened recently. This should enable exporters of manufactured goods to be more competitive in global markets. Raw material input costs are, however, rising. Signs of a slight improvement in economic activity are on the horizon.

The South Korean Trade Commission recently responded to complaints about foreign imports of structural sections into the country by imposing anti-dumping duties on material from a range of suppliers. Seven mills were exempt when they agreed to lift selling values. Steel imports are on a decreasing path. In April, a year-on-year, reduction was reported, whilst, in May, the decrease was 11 percent.

The Taiwanese steel market has been influenced by price movements in China. Reinforcing bar list prices have been reduced. We detected very few positive vibes from the market this month.

The Czech and Slovak economic growth figures remain encouraging, with GNP figures in the first quarter at 2.9 and 3.9 percent, respectively. The Ukrainian crisis is weighing heavily on the fortunes of both countries. In Poland, the flat products sector has been quite steady this month.

Steel demand in Western Europe is holding up reasonably well. The mills are experiencing strong competition from imports. The European Commission has instigated an anti-dumping investigation against imports of cold rolled coil from China and Russia. Selling figures are under negative pressure in most member states.

Source: MEPS International Steel Review – June Issue

NORDIC STEEL MARKET ROUNDUP FROM MEPS

Market conditions are relatively steady across the Nordic region, according to MEPS. The volume of enquiries and orders, for hot rolled coil, has begun to reduce as the summer holiday season approaches. Supply chain participants do not expect any major changes in market conditions during the third quarter.

Commodity plate consumption is fair. Manufacturing has shown signs of recovery but the construction sector remains weak. Competition between suppliers has been increased by imports from Russia.

Demand for cold rolled coil is largely stable. Delivery lead times are now stretching beyond the summer break. Nevertheless, the producers have been unable to increase selling values, as yet.

Drawing quality wire rod demand is satisfactory, albeit slightly below historical levels. Supply chain participants expect activity, during the next three months, to continue at a similar level. Consumption of structural sections is fair. Delivery lead times are quite long, the mills are sold out until the summer holidays.

There is some upward pressure on rebar prices from higher scrap costs. Consumption is fair. However, imports from Russia and Belarus are plentiful. In Sweden, sales volumes to infrastructure and civil engineering projects are good.

Merchant bar market activity is steady and is expected to continue at the same level after the summer break. Sellers in Finland report some improvement in demand from the manufacturing sector. Meanwhile, in Norway, consumption from OEMs is steady at a mediocre level.

Source: European Steel Review Supplement – June Edition