Steel Prices Hold up Better in Nordic Region than in Continental Europe


 According to MEPS International, steel prices have recently held up better in the Nordic region than in continental Europe. 

However, consumption of hot rolled coil is limited leading to increased competition between suppliers. In Sweden, the level of salesn has been boosted by demand from the construction sector due to the continuing mild weather.

Market activity, for cold rolled coil, is decreasing. As the year end approaches, customers are trying to minimize their inventories. Prices are falling more slowly in Scandinavia than in the rest of Europe. Supply chain participants in Finland think that the market will be strengthened by the rationalization arising from the merger between SSAB and Rautaruukki.

The commodity plate market is weak. The conflict in Ukraine continues to adversely affect the exports of agricultural equipment. Local markets are subdued for makers of farming machinery and other engineering concerns.

Wire rod producers and customers will close for two weeks around Christmas and the New Year. This may help to balance the supply and demand. Order intake, in Sweden, has been adversely affected by the precarious position of the new government. Structural section prices have recently edged downwards as a result of decreasing scrap costs. However, buyers expect producers to seek higher prices in the near future.

Suppliers expect to shift significant tonnages of rebar in December. However, as scrap costs reduced, rebar values have slumped. Demand remains fair, in Norway's parts,  where wintry conditions have not arrived. Merchant bar consumption is disappointing. Sales volumes have decreased as the year-end approaches. Declining raw material costs have contributed to reduced selling values.