Free Newsletter
Register for our Free Newsletters
Newsletter
Zones
Advanced Composites
LeftNav
Aerospace
LeftNav
Amorphous Metal Structures
LeftNav
Analysis and Simulation
LeftNav
Asbestos and Substitutes
LeftNav
Associations, Research Organisations and Universities
LeftNav
Automation Equipment
LeftNav
Automotive
LeftNav
Biomaterials
LeftNav
Building Materials
LeftNav
Bulk Handling and Storage
LeftNav
CFCs and Substitutes
LeftNav
Company
LeftNav
Components
LeftNav
Consultancy
LeftNav
View All
Other Carouselweb publications
Carousel Web
Defense File
New Materials
Pro Health Zone
Pro Manufacturing Zone
Pro Security Zone
Web Lec
Pro Engineering Zone
 
 
 
News

Bumpy ride ahead for European steel sector?

MEPS (International) : 15 August, 2013  (Special Report)
The European steel sector has endured a very tough time over the past year, mirroring the situation in the wider economy. Steel prices were approximately 10% lower in the first seven months of 2013, compared with the corresponding period in 2012. Mill margins have been continuously squeezed. MEPS’ assessment for the price of iron ore fines (Fe 64%, FOB - Brazil) has declined by only 2% in the same period.

A number of steelmakers have announced hikes to their list prices, recently, in an attempt to improve their financial position. The MEPS - EU Average All Products Composite transaction value reached a forty month low in July. MEPS believes that modest increases will be achieved after the summer break. Inventories are low and a slight pickup in purchasing is expected to take place to cover customer requirements for the final trimester. Rising scrap costs should enable producers of long products to implement higher selling figures. However, any upward movement is likely to be short-lived. The fourth quarter is traditionally a period of weak demand and prices are predicted to fall in October and November.

A more pronounced upturn in transaction values is foreseen around the turn of the year as customers start to place orders for delivery at the beginning of 2014. Steelmakers are expected to make production cuts during the winter break. This should lead to more equilibrium between supply and demand in the new year. Consumption should also improve during this period. The top of the price cycle is forecast to occur in the spring because selling figures usually slip back as the holiday season approaches.

Bookmark and Share
 
Home I Editor's Blog I News by Zone I News by Date I News by Category I Special Reports I Directory I Events I Advertise I Submit Your News I About Us I Guides
 
   ¬© 2012 NewMaterials.com
Netgains Logo