The market for hot rolled plate in northern Europe remains weak and transaction values slipped this month in some countries. However, steel strip mill prices bottomed out in November. The MEPS Nordic Average Price for hot rolled coil increased for the first time since August, and further advances are forecast throughout the first half of 2011.
Sales are subdued due to year-end stock control measures and wintry weather. The producers must curb their output in order to balance supply and demand and support prices.
European suppliers are looking to tap into growing real demand in Asia, while expressing concern about the effect of struggling euro-zone economies such as Ireland, Portugal, Spain and Greece.
Most long products prices have risen already, in response to higher scrap costs. The mills have proposed further, larger hikes for January but these are likely to be limited by mediocre sales volumes. However, the MEPS Nordic Average Price Forecast for Reinforcing Bar indicates significant monthly advances until next July. Consumption of high-end products is encouraging but commodity grades are moving more slowly. Construction activity is being hampered by wintry conditions and is likely to be affected by government spending cuts in many countries next year.