Further discounts are expected in late November and early December. Prices in Germany are particularly weak. In contrast, they hold up at a slightly higher level in France and the United Kingdom.
Many factories are facing a shortage of orders and aim to fill gaps in their December production schedules as they try to improve cash flow. In order to balance supply with demand, production is interrupted and production facilities are idle. Upcoming plant maintenance can be extended to the first quarter of next year.
Price cuts fail to drive a significant increase in purchases from distributors and service centers. Very few transactions are made, most orders are for small quantities. Stock levels are gradually decreasing but continue to exceed current market requirements.
Sales volumes to end users are limited. Some customers are reluctant to accept material pick-ups because their warehouses are full. They also want to avoid buying high-priced rolls that were originally ordered a few months ago. This makes it difficult for distributors to empty their old inventories and meet their lower-than-normal year-end stock targets.
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