MEPS believes steel transaction values will decline in the remainder of the second trimester, despite higher mill input costs. Buyers are already anticipating discounts when third quarter negotiations get underway.
Steel price rises have stalled in the European market. Increased selling values sought by the domestic producers have not been implemented and figures have, in fact, slipped.
Order intake at the mills is slow. Many companies have adequate inventories and are only ordering to meet their immediate requirements. Moreover, they are restricting purchase volumes due to growing uncertainty regarding the future steel price trend.
Imports, which were ordered in the first quarter, are now arriving into European destinations in large quantities. This situation has contributed to the downward pressure on domestic selling figures.