In the last weeks, sources from North-West Europe confirmed that the coils market continues to be under pressure for volumes availability. This trend supports the coils’ values despite the uncertainty caused by new restrictions applied almost all over the world.
The previous week, NLMK confirmed that his service centre in Belgium, based in Manage, suffer from delay in production due to coronavirus.
A company’s spokesman affirms <<In Belgium, the situation created by Covid-19 is getting worst day by day for a few weeks>>. <<Since the machinery can’t operate anymore at the same speed, the Manage plant is subject to interruptions. All of this cause delay in production>>. The spokesman says that this is only a temporary status.
The structure has a cutting line able to work nearly 200.00 tons per year of coils. The majority is given to the auotomotive sector, meanwhile the rest is intended for the general industry, included building and metal furniture. The Manage plant is located close to the La Louviere factory and it is mainly supplied by it.
The delay in NLMK support centre confirm those found in the coils’ market in the whole Europe. These are the result of a shortage of supply and new uncertainties created by the rapid growth of virus all over the world.
Another source in the service centre in Benelux confirms that the market is under pressure.
<<Most of factory have shipment troubles. A German steel mill, for example, was supposed to deliver material in our stock at the end of July, however they begun to deliver in the half of September and they haven’t completed the order yet>>, the source affirms. <<The others service centres have matters especially caused by a demand higher than the customers waiting>>.
It is difficult to quantify the impact of “soft-lockdown” restrictions on steel market in Europe, certainly there will be another slowdown of the automotive demand from customers, however there won’t be direct impact neither on manufacturing area in the brief period, nor in the building sector.