And, it predicts that this situation will apply to all other categories of sheet in the coming months. To assess the impact around the world we have made an evaluation of the situation across all the continents.
North America
This market is in serious difficulties, says MEPS. Prices in the US for
hot rolled coil are falling almost on a daily basis. They are, currently,
down by almost 30% on the figures reported just six months ago. The
derived products have fared a little better but not much. The Canadian mills
are also suffering from substantial price reductions. Hot rolled coil prices
have fallen by 20% since May.
The drop for cold rolled is slightly less. The price scene in Mexico is similar to the other major NAFTA countries. Prices have been slashed in recent months – despite a degree of protection from import duties imposed on supplies from outside the region.
Oversupply is a major concern in all North American countries – caused by a combination of increasing import volumes and excessive production rates.
South East Asia
Asian prices are weakening. So far, the rate of decline in the Eastern part
of the continent has been in the range of 5 percent. Indian demand is quite
healthy. Import duties provide a degree of protection. Nevertheless, prices
have been falling steadily through the second half of the year.
The mills do not, however, appear to be concerned about oversupply at the moment, even for the hot rolled coil segment. The situation could change soon. In many South East Asian countries, prices are extremely low due to weak currencies compared to the rest of the world.
Western Europe
West European strip mill product prices are now on a downward path. Hot rolled coil imports are a major threat. Inventories are high at the service
centres and users. Many customers are trying to delay deliveries and stocks at the steelmakers are rising. Prices have fallen by an average of 7.5% for hot rolled coil over the past six months. We can detect signs of
a price slide in the derived products in 2001, after an extremely solid
performance this year.
For further information, email: MEPS (Europe).
Slower ferrous outlook for winter months
With ferrous scrap prices for December looking likely to stay level or even fall because of a poor domestic outlook coupled with weaker international markets reflecting international weakness in steel prices. Consultants MEPS of Sheffield report that the international strip mill products sector is seeing hot rolled coil prices falling in all parts of the globe.
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