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News

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European rental market - instead of raising prices declined

Reducing the demand for rental just to microscopic size and the October drop in the dollar against the Euro has forced producers from southern European countries to compete this month in a frank dumping. According to information from various sources, the decline of European prices relatively well «hold» to this flat-rolled products amounted to between 5 and 6% in October. And it is — instead of the previously announced increase. However, in a situation where imported hot rolled coils (including Ukrainian), proposed to the EU average of 80−120 $ / ton cheaper than local goods, and anything else is not expected. The Europeans have not helped, even a relatively high quality of their products for decades and forged ties with local customers. According to data published in open sources, the worldwide fall in the October prices for flat-rolled products most seriously affected is in the EU — at the moment they shrunk it to a state of mid-March 2010.

Given the state of the global market, it is possible to predict that not only European but also global demand for rentals will remain low at least until the end of the year (which automatically for some time eliminates the question of a possible price increase).

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