European Flat Steel prices continue to tumble on weak demand

UNITED KINGDOM December 03 2015 1:49 PM

LONDON (Scrap Register): European steel prices for flat and long products continue to tumble due to weak demand conditions and end of year stock control measures, according to MEPS.

In November’s issue of the European Steel Review, MEPS reports that reduced activity is putting further downward pressure on European prices. Buyers are delaying end of year purchases as they focus on destocking. Furthermore, steel mills are reducing prices to maintain output. 

Significant price falls were reported for long products, in November, as customers put pressure on steel mills to pass on the reduction in scrap costs. In the flat products market, low-priced material from China and Russia continues to dampen domestic selling figures. However, demand in the automotive sector appears to be holding up quite well. 

We hear that improved order intake levels for the linepipe sector may result in a revival of fortunes in the commodity plate market over the coming year. The planned closure of Tata Steel’s UK facility will curb supply while Ilva and Salzgitter have also announced capacity reductions.