STEEL NEWS

AS MEPS PREDICTED, MOST EU STEEL PRICES RECOVERED IN SEPTEMBER

The EU flat products market has reopened after the long holiday to fairly muted business activity levels. However, there is an air of optimism around, due partly to improved economic news from several countries. In reaction to late July mill announcements, prices have moved up during the summer. Producers, faced with severe financial losses, were forced to make determined efforts to lift basis values, particularly as raw material costs remain high. 

A number of steelmakers claim to have production problems, which means there will be less material available during the final quarter. Further price advances are planned for period four rollings. Seeing this upward trend, buyers are undertaking some restocking. However, they may become more interested in third country material as domestic values grow but this is unlikely to influence fourth trimester negotiations.