- Sources report slow demand due to summer season
- Mills raise offers
European domestic steel sections prices edged higher week on week to July 5, as mills increased offers despite weak demand.
Platts assessment of European medium sections (category 1, S235 JR) increased Eur20/mt to Eur820/mt delivered on July 5, according to S&P Global Commodity Insights data.
One European mill source reported an increase in mill offers for medium sections category 1 and cited offers for beams around Eur830/mt delivered and indicated that Eur820/mt delivered levels were workable.
“Prices have bottomed out. Now, even if scrap is correcting by Eur5-Eur10/mt, it will not be sufficient to support lower prices and I don’t think that mills can sell at lower prices anymore,” he said.
One Benelux-based distributor source cited tradable levels for beams around Eur850/mt delivered. The source said prices for category 1 medium section seemed to be increasing. “Producers want to stop prices from decreasing,” he said, adding that demand was weak in the market and is not expected to significantly improve during the summer holidays.
A second distributor source in the Benelux region reported a workable level for beams around Eur830/mt delivered. The source reported that mills raised offer levels as scrap and energy prices seemed to be increasing. However, demand was expected to remain low due to upcoming summer holidays.
Meanwhile, Platts assessment of Northwest Europe Rebar was up Eur10/mt to Eur580/mt ex-works week on week to July 5, according to S&P Global Commodity Insights data.
One Benelux based distributor source cited tradable levels for rebar in the domestic market around Eur595/mt delivered, adding that prices for rebar seemed to be softening as demand was weak ahead of summer holidays and mills had weaker orderbooks.
One European trader, however, reported that rebar prices seemed to be strengthening and indicated a workable level for rebar in the domestic Northwest European market around Eur595-Eur610/mt delivered.
Another distributor source based in the Benelux region reported prices for rebar in the domestic market around Eur580/mt ex-works.
Platts is part of S&P Global Commodity Insights.