European steel prices VS US steel price

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German Steel Mills Reduces Prices in An Effort to Maintain Output

European steel prices for flat and long products continue to plummet due to end-of-year stock considerations and the seasonal slowdown in activity.

In 2016 December’s release of the European Steel Review, German steel mills have reduced prices in an effort to maintain output. European buyers have secured spot deals at competitive resale values as manufacturers sell excess stock to minimise end-of-year inventories.

UK buyers are forecasting further price falls in the first quarter as European market activity is generally weak.

Conversely, demand in the European automotive sector is growing month-on-month. Furthermore, the depreciation of the euro against the US dollar is making non-EU imports less competitive.

Consequently, Italian and Spanish steelmakers are talking of small price rises in the first quarter. However, buyers are doubtful that any price hike would be accepted by the market.

US Raw Steel Production Declines Sharply by 14.4% y/y to 1,536,000 Net Tons

United States raw steel production declined sharply by 14.4% year-on-year to 1,536,000 net tons in the week ended December 12, 2015, while the capability utilization rate was 64.2 percent, as per the latest figures from the American Iron and Steel Institute.

According to AISI, production was 1,795,000 net tons in the week ended December 12, 2014 while the capability utilization then was 74.6 percent.

Production for the week ended December 12, 2015 is down 1.1 percent from the previous week ended December 5, 2015 when production was 1,553,000 net tons and the rate of capability utilization was 65.0 percent.

Adjusted year-to-date production through December 12, 2015 was 83,864,000 net tons, at a capability utilization rate of 71.4 percent. That is down 9.0 percent from the 92,117,000 net tons during the same period last year, when the capability utilization rate was 77.5 percent.

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