MEPS: the steel market is waiting for a correction

MEPS International expects a price correction in Europe in the fall, which should contribute to an increase in the number and attractiveness of offers of steel products imported from outside the European Union. Manufacturers are hoping, however, that the recently introduced anti-dumping measures will help keep prices at current levels.

The market continues to wait for a price correction, relying on supplies from China and Russia, which were ordered in the spring. They will hit the European market in September, which could lead to lower prices. At the moment, their level is assessed as "reasonable", although in Russia you can buy wire , sheet, section and shaped steel at lower prices. Therefore, in Europe, a growing interest in imports is expected, especially in the context of relatively high prices, which peaked at local factories.

MEPS reports that steel demand in Europe slowed down in July. Some buyers have enough stock for the rest of the summer. The offers have become more attractive to importers from outside the EU, in particular to buyers from southern European countries, especially when the delivery of local producers is scheduled for the 4th quarter. Recipients hope that the fall in the availability of European products will stop and their prices will fall.

The German market has become active, especially due to the strong automotive segment and the good situation in the construction industry. Production from local factories dropped slightly and buyers noticed an increase in interesting offers from Asia. Increases in shipments from China, South Korea and India are also seen in Italy. Customer activity is expected to decline, excluding the automotive industry.

The weakening of the pound after the Brexitu referendum means that the UK has become less attractive to importers, but the country has increased its export opportunities in the case of steel products. Rising raw material costs, which, together with the weakening British pound, encourages producers to push for higher prices. According to the MEPS, there has been a slight decrease in prices in Europe.