GERMANY October 28 2014 10:18 AM
BERLIN (Scrap Register): General demand in the German hot rolled coil market is flat, although the pipemakers are enjoying satisfactory order books, said MEPS International in a snippet.
According to MEPS, steelmakers have failed to lift fourth quarter basis values. Most big users have now finalised their business for the October/December period
Hot rolled plate stock levels are stable, where distributors’ sales are climbing. The general business outlook is mixed, partly due to the Ukrainian problem and, therefore, investors are holding back. Nevertheless, commodity plate values have advanced a little since our last report.
Domestic suppliers have not implemented their proposed final quarter hike, for cold rolled coil, as there has been no revival in demand since the summer vacation. Construction-related sales of hot dipped galvanised coil are static. In the general market, basis numbers have not recovered due to oversupply. The German vehicle manufacturers continue to try to reduce their steel costs wherever possible, as they struggle with declining export sales.
After six months of level pricing, low carbon wire rod mills have conceded a small discount during recent negotiations. There is little activity in the recoil market, where values are, again, unchanged although there is negative pressure from declining scrap costs, MEPS added.
There is strong competition amidst subdued purchasing activity in the structural sections market. Suppliers have been forced to trim prices to try to stimulate buying interest.
Rebar demand is subdued and there was renewed negative pressure as scrap costs continued to tumble. Producers have lost half the increase secured in September.
The mills have failed to resist customers’ demands for merchant bar basis cuts. Purchasing activity remains cautious as buyers are still unsure of future price movements. There has been no improvement in business levels.