Analysts predict in the near future the emergence of a new wave of financial crisis in the European Union countries. The policy of the new government negatively influenced Italy and Spain, which today have to carry out loans at even higher interest rates. This can lead to the fact that the old debts, for the refinancing of which new loans are taken, will no longer be extinguished.
Negative forecasts cause a steady decrease in business activity. Financial and credit institutions are prepared for new downturn, and prefer to accumulate capital, reducing the number of loans issued. Consumers at the moment have begun to actively use the accumulated reserves. The demand for steel in this region has significantly decreased, especially in the structural steel sector.
The proposal of a long metal rolling in Italy and Spain at the moment exceeds demand, although production capacities are loaded less than half. If in March-April manufacturers tried to hold prices, and even made attempts to raise them, then in May the price of hot rental fell 30-40 euros per ton, and reinforcement by 15-20 euros. At the moment in the countries of Southern Europe, the price has fallen below 500 euros.
The reinforcement of Italian and Spanish manufacturers in May in large quantities was sold in the Middle East and also in North Africa, which largely contributed to a decrease in the Euro exchange rate. The quotes rose a little to the mark of 510 euros, that is, by about 2% compared to the middle of the month. So far, sales volumes in Algeria are not reduced. However, in Germany, Poland and the Benilyux countries there is a lack of demand, in particular due to the low activity of the construction industry.
Manufacturers of Southern and Eastern Europe, as well as Latvia, are quite actively entering this market, which, undoubtedly, into the hands of customers. If in early May in Germany the reinforcement sold at least 550 euros per ton of CPT, today the price is already 510-530 euros. In the domestic market in the countries of Southern Europe, the quotes decreased to an indicator of 490-505 euros EXW.
As for the flat rental, a similar picture is observed here. All suppliers entered the fight for buyers, which led to a decline. The maximum prices are observed in German companies-530-540 euros EXW, but most contracts here are long-term. In Spain and Italy, prices from the beginning of the year fell below 500 euros from the beginning of the year, and amounted to 480-490 euros EXW. This led to the non -competitiveness of imported products of Chinese, Turkish and Indian manufacturers. Traders expect even more prices.
