Negative pressure persists in the European flat products market. Having recently brought more capacity back on line, domestic mills are now suffering from a lack of orders, since end-user demand remains weak in many sectors. Under these circumstances, distributors refuse to rebuild stocks. This has led to further discounting this month.
The weakening US dollar has also made third country imports of commodity grade material more competitive, although the longer delivery lead times are still problematic in today’s rapidly changing climate.