German flat steel inventories drop further in February

German flat steel stocks dropped further to historically low levels in February on persistent material shortage, data from German steel stockholder association BDS showed.

Flat steel stocks across the German distribution sector dropped 2.6% month on month to 1.11 million mt, continuing a 33-year low. The year-on-year drop stood at 8.2%.

Sales of flat steel dropped 10.3% month on month to 569,928 mt following a more buoyant market in January that saw some pick-up in sales. Sales were down 3.3% year on year.

The low stock levels lay the current material shortage for flat steel bare.

Market participants reiterated that material availability was favored over price and buyers were scrambling to source volumes.

S&P Global Platts daily assessment for hot-rolled coil, assessed at Eur800/mt ($954/mt) EXW Ruhr March 23, was on a par with the all-time high last seen in 2008. Offers for the product have been heard up to Eur850/mt.

“The situation is quite desperate in cold-rolled coil and dot-dipped galvanized. And in HRC it can also evolve into desperate now,” a German stockholder said.

Mills continued to have long lead times into August, with sources saying mills have been very selective in taking new orders to manage supply chains.

The stock levels for long steel built again in February. Long steel inventory levels rose for the second consecutive month, by 6% to to 792,925 mt. Compared to February 2020, however, levels were 3% lower.

Long steel sales saw an 0.8% month-on-month drop to 242,815 mt, and a 15% year-on-year drop.

— Laura Varriale