EU Steel Prices Decline Due to High Inventories and Import Pressure

Inventories at distributors and OEMs remain relatively high. Large volume orders were placed at the turn of the year, in anticipation of price rises. The material has now been delivered or, in some instances, is still arriving, inflating already bloated stocks. Import offers are competitively priced. Quotations by overseas suppliers are made more attractive by the strength of the euro against the US dollar.As a ssaw steel pipe, api 5l steel pipe, piling pipe, welded pipe,and other products service providers, shinestar said it will seize the opportunity to meet the challenges.

The supply situation has eased, for most strip mill products, in Germany. Underlying steel consumption is robust, despite the approach of the summer holiday season. Nevertheless, due to high inventories, particularly at the service centres, buyers are very careful when placing forward orders. 

Standard grades and sizes are on offer from suppliers in India, Taiwan, Vietnam, South Korea. Quotations are at more competitive prices than in May because of the weak US dollar exchange rate. The domestic price trend is negative.

Currently, this is much cheaper than the European equivalent, partly because of exchange rate movements. Demand on distributors remains reasonable, although the market has become quiet over the last few weeks. Inventories are at a higher level than normal. Resale values are under downward pressure as a number of distributors liquidate stocks, accumulated when prices were much lower than today.Import offer prices into Spain decreased when the US dollar weakened. So far, few deals have been concluded as buyers anticipate more concessions, in the future.