Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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October 2011 | Galvanized Steel and Tinplate Market Tracker


Fear – not fact – is prime reason for price weakness: European Market Highlights


Italian mills have dropped their base HDG level below the CR coil base.

Amid the economic uncertainty, buyers are very reluctant to place long-term orders. This has cut lead times and order sizes and is resulting in very aggressive pricing for short-term deals. Lead times are now essentially down to 2-4 weeks for most grades and dimensions and this gives mills absolutely no pricing power. However, in our opinion underlying demand is not that bad. There has been some weakness in automotive production as some firms – notably GM, Ford and Peugeot – have trimmed production schedules in order to avoid building inventory. Construction markets remain weak, but this is no change, and there is some seasonal slowing of orders in this sector. Overall industrial production growth has slowed in most markets, but is still marginally positive. Distributors are however seeking to minimise inventory as they come to year-end and are cautious of buying given the political environment and are certainly not undertaking...

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