The plans of flat products makers in northern Europe to introduce increased October prices were scuppered by weak demand, together with aggressive offers from suppliers in southern and Eastern Europe. As MEPS reported last month, customers held back from paying higher figures and most have been able to agree reduced values in recent weeks. Some quarterly prices in Scandinavia are significantly lower than the period three numbers. Buyers are now very cautious, fearing further softening of values. Activity is not expected to pick up this side of the calendar year-end.
The market for long products is also subdued. Prices for scrap-based products have fallen by at least as much as their input costs. Construction activity remains slow and this is unlikely to change as winter approaches. Demand from automotive and other manufacturing industries has slipped a little, although forecasts for car making in Sweden and Germany are still optimistic.
Stainless steel consumption failed to take off after the summer break. There has not been much change in basis figures, although some buyers have managed to secure cheaper spot deals in the last two months. However, nickel values continue to push alloy surcharges upwards and distributors have reported some increased activity in recent weeks.