Consumption of hot rolled steel is growing in Scandinavia

A gradual recovery in consumption in Denmark was reported, supporting the moderate increase in hot coil prices in October. In Sweden, the trend in demand varies by sector, with sales to pumping equipment and forklift manufacturers declining very slightly during this year's difficulties. The ordered tonnages of truck and agricultural machinery manufacturers are being restored. In Norway, purchasing volumes are stable, but in Finland, distributor sales fell 10 percent in September compared to the same month in 2019.
Overall, strip mill product prices continue to rise in Northern Europe, reportedly more due to declining production at factories than due to market demand. The upward trend may be curbed in the near future by restarting several regional blast furnaces and reducing scrap costs. Supply chain participants hope this will be offset by growing activity in the automotive sector.

Hot-rolled sheet consumption in Denmark is also recovering, albeit slowly, and buyers have resisted price increases proposed by regional producers this month. The growth in market activity after the summer vacation in Sweden has been modest. The recent slight increase in sales was driven in part by the weakening of the local currency against the euro. Demand from the energy, oil and gas industry in Norway is improving, but shipbuilding activity remains low. In Finland, mergers and restructuring of producers and other metal consumers are resulting in reduced sales opportunities.

Car recovery supports HDG
Sales of coated sheets and coils from Danish warehouses rose in October due to a strong increase in activity in the automotive industry in Germany. Automotive recovery continues in Sweden, where consumption for construction is also high, but the outlook is unclear. Increased delivery times from European plants support the argument for higher prices in Norway. Buyers in Finland are reporting a shortage of production capacity, although regional producers of galvanized coils have previously accepted orders for significant quantities at low prices.

Increased CRC delivery times
Consumer spending in Denmark was boosted by government payments to support the local economy. However, the main consumption of steel will not return to normal until the consequences of the coronavirus pandemic are eliminated. In Sweden, delivery times for local cold rolled coil