Belgium HRC Steel prices decline in early December: MEPS

BELGIUM December 18 2014 5:46 PM

BRUSSELS (Scrap Register): Belgian hot rolled coil steel basis numbers are below in early December those of a month ago, as per MEPS International. Delivery lead times are short. Slit coil, that can be delivered very quickly, is extremely cheap, leaving very little margin for the distributor.

According to MEPS, third country import competition has impacted on commodity plate values in December. Domestic steelmakers have conceded another small discount for cold rolled coil during recent settlements. Chinese imports are competitive.

Drawing quality wire rod numbers have been rolled over from November. Steelmakers are not busy as demand is slow. Opportunities for export sales have allowed steelmakers to maintain structural section prices, in spite of cheaper scrap. However, resale margins are being cut.

In the rebar market, distributors are being very cautious and keeping inventories down as steelmakers continue to give away the advantages of cheaper scrap. There is also a threat from Turkish imports. Consumption of merchant bar is down in 2014. We have noted negative price movements since November.