Wednesday, June 29, 2011

EU strip prices slip whilst long products remain strong

MEPS Report :Flat coil products prices continue to decline in northern Europe. Selling values in the Nordic countries have fallen by a greater amount than those in the rest of the continent this month, bringing them closer together. Demand is steady at a relatively low level but, inevitably, sales will slow around the summer holiday period.
Activity in the German and Swedish auto industries is robust and continues to support business in neighbouring countries. Quarterly prices are expected to fall substantially between the second and third periods. However, some producers are only committing to July deliveries as they believe they may later be able to secure higher returns for August and September shipments.
The market for higher specification quarto plates is buoyant, with healthy demand from energy and offshore applications. Increased activity in construction, yellow goods and truck manufacturing has led to increased consumption of commodity plates, resulting in prices being rolled over this month.
Rising scrap costs and growing demand from the building industry have brought about higher prices for reinforcing bar and mesh quality wire rod in all EU countries. Drawing quality wire rod values, though, have continued to slide in the Nordic countries. There has been little change in selling figures for medium sections and beams and merchant bars. Demand is relatively subdued but there are signs that values for these products, too, may be bottoming out.


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