The European steel market has been shackled for the past two months. After the untimely surge in the last Qtr of 2010 it seems the fortunes have been sealed. The market has remained unilaterally descendant caught up in the throes of surplus stock and poor demand. At the same time trail of crisis viz., MENA has left an indelible mark.
The supplies destined for the MENA countries naturally drifted towards the European shores plummeting the offer levels further. This in turn put pressure on the domestic levels to ward off import onslaught. At the same below par demand from the end use segment has kept the market writhing all through.
Ironically Q2 being the peak demand season has been devoid of even occasional surge and pessimism has become order of the day.
Although experts opine that with buying being absent for the entirety of Ist Qtr stocks depletion will lead to opening of buying. At the same time seasonality even though delayed will certainly create trace of demand to give that elusive flicker.
( Source: www.steelguru.com )