Sections mills in northwestern Europe have seen some success with increase prices at the start of the year, however, buyers do not appear to be as successful at passing on these higher levels when selling to customers.
One market observer tells Kallanish that mills sought increases of €30/tonne ($35/t), but distributors cannot hand that down to their buyers.
Buyers confirm this, and see the increase implemented in transactions as €20/t. With previous levels around €730/t delivered for category 1 sections, buyers now pay around €750/t.
“Mills can exert their hikes better than we can,” one buyer says. “Currently, we must restock from December’s depletion of the warehouse, to be prepared for any enquiry,” he notes.
Mills are pretty much coordinated, according to a German manager who buys mostly domestic material for his company. “Prices would not differ much if ordering across borders; the mills are pretty unanimous this time,” he says.
According to the manager, the structural steel construction sector has big gaps in order books for the first half year. “They tell me very clearly that they are doing okay in Q1, but not beyond. They have enquiries in the longer run for the second half, but otherwise it looks a bit bleak until June,” he says.
Additionally, cold weather and snow is still putting a brake on construction activity in various regions, not only in the east, but also “in northern Hesse, where we are not used to this,” the manager says.
