Prices for sections from German mills have remained relatively sturdy, or softened only to a lesser extent than other steel products. Values are expected to remain at current levels for the remainder of July.
The level of around €820/tonne ($938) delivered, for sections category 1, S235, has largely prevailed, with no significant movement foreseen. In fact, domestic prices have received indirect support from the disappearance of some import offers. In June, offers from Polish and Spanish mills were seen at as low as €800 delivered to Germany. Spanish mills have since lifted their prices, one buyer tells Kallanish.
He notes that northwestern European mills are enjoying relatively strong capacity utilisation, given they have regular customers, in the UK and overseas. “[Sales are taking place] even to Canada and the USA. It’s hard to believe, but they [US buyers] cannot get all they need from local mills,” he says.
In this scenario, mills have little need to attract demand by lowering offers, especially since mills in Germany and the Benelux are taking turns with summer closures, and Italian mills are seen closed for all of August.
Another manager points out that domestic demand is still far from what sellers would like it to be. But, for the moment, the summer effect is providing a stability, and new offers, higher or lower, are not expected before September.
