UNITED KINGDOM April 24 2017 6:15 PM
LONDON (Scrap Register): Declining raw material costs and shrinking delivery lead times, from the mills, are putting negative pressure on hot rolled coil prices in Nordic regions. Demand from the construction sector continued to be strong in some areas, according to MEPS.
Hot rolled plate selling figures advanced in April, supported by fair consumption and decreasing import volumes. The mills continue to push for increases.
Cold rolled coil customers have healthy stock levels after increased buying activity in the early part of 2017. Consequently, order placement is slowing. Selling figures are holding up, so far.
The supply of hot dipped galvanised material remains tight. Delivery lead times are longer than for other strip mill products. Sales to the auto supply chain are being maintained at a high level.
Demand for wire rod is at a high level. The mills remain busy. Prices rose this month. With summer approaching, sales to the construction sector should pick up.
Rebar prices have held steady in April. However, declining raw material costs may lead to softening prices in the near future. In Finland, demand is said to be coming from the housing and commercial building sector, rather than from infrastructure projects.