European markets remain under pressure from supply and demand imbalances

The imbalance between supply and demand continues to have a strong impact on European flat steel prices. This was reported by the British think tank MEPS.

Despite the optimistic macroeconomic indicators of the eurozone, clients of metallurgical companies are in no hurry to place their orders. European steelmakers are trying to attract buyers with additional discounts.

In Germany and France, the steel market is under pressure from low demand and is being attacked by producers from other regions, where prices are lower than Central European ones and where you can buy ready-made companies for work on the EU market.

End-user demand from MEPS sources at service centers is poor and has been described as “terrible”.

Meanwhile, steel business owners are trying to resist the downward price pressure. However, the largest enterprise in Italy, the Ilva steel plant, has lowered steel prices due to a reduction in the cost of iron ore raw materials.

Service centers continue their cautious policy in the procurement of metal products, fearing that prices have not yet reached their bottom.

Sentiment is starting to improve somewhat in Spain, thanks to higher economic forecasts for 2014.

However, the European steel market remains weak and prices continue to fall. Entrepreneurs were reluctant to buy new volumes of steel products at the end of March, counting on further growth of discounts. But, according to MEPS, their opinion is gradually changing, as the steel mills in Europe are increasingly reluctant to offer large discounts.