FINLAND July 28 2015 9:01 AM
LONDON (Scrap Register): Steel market conditions have weakened across the Nordic region, according to MEPS International. Lacklustre demand and low raw material costs has led to softening hot rolled coil price. Supply is plentiful.
Demand for commodity plate is steady at a moderate level. Prices have been negatively affected by plentiful supply and the general economic malaise in Europe. Cheap imports are available from Russia and Eastern Europe.
According to MEPS, the European Union’s antidumping investigation into cold rolled coils from China has led to some tightening of supply. Distributors do not foresee an upturn in the market in the short term. In Finland, the number of offers of Russian material has increased, as producers from that country try to generate more western currency. Meanwhile coated coil demand from car makers continues to be strong.
Business activity, for drawing quality wire rod, remains stable at a reasonable level as it has so far this year. Supply chain participants expect the same market conditions to persist, after the summer break. Consumption in the final quarter, though, is typically weaker.
In the structural sections market, demand from the construction sector is quite subdued. Some mills have been seeking price increases, in Norway. These have not been accepted, so far. Buyers are unsure whether advances will be agreed, in the near term.
The rebar market is quite stable. Demand is fair. Producers tried to secure small price increases in July but were not successful. Scrap expenditure has reduced, in Finland. Furthermore, local suppliers are competing with cheaper imports from Russia. Sales volumes have grown, in Norway. Demand from infrastructure and general construction projects has been supported by increased government investment. Market participants believe this upturn will continue.