UNITED KINGDOM October 24 2015 11:02 AM
LONDON (Scrap Register) : Domestic selling figures across the Nordic region remain under pressure, according to MEPS. Buyers of hot rolled coil are reluctant to hold stock because they feel unable to predict price trends, in the near future. Competition between suppliers is keeping profit margins tight.
Business activity for commodity plate is depressed. No change is foreseen in the immediate term. Buyers in Norway report that imports from China are being offered, although quality issues make them unsuitable for some end-users.
Cold rolled coil sales tonnages have been reasonable in September and October. However, prices are down. Meanwhile, demand for coated coil is satisfactory but buyers are wary of the likely effects of the Chinese slowdown and the Volkswagen car emission scandal.
Drawing quality wire rod transaction values have moved lower. Competition between local suppliers remains tough and has been exacerbated by increased imports from Russia.
Sales volumes of structural sections have dropped off since mid-September. Slower growth in China has had a knock-on effect, in Europe. Delivery lead times from regional mills are very short, at one or two weeks.
Rebar consumption is mediocre. Transaction values dropped in October. Subdued demand and further reductions in scrap costs are putting selling figures under pressure.
End-users of merchant bar are only buying for their immediate needs. Stockists are too reluctant to build inventory. Prices continue to fall.