Northwestern European plate mills have announced price hikes of up to €70/tonne ($80), Kallanish is told by market observers.
The announcement has not been heard ubiquitously, but is confirmed by various market sources who tell of a hike range of €50-70. This has thus far been heard being demanded by mills in Germany and Belgium, but apparently not from re-rollers.
The move defies the ongoing lull in demand on the European market. In addition, it comes in midsummer, arguably the low point of market activity in an already weak year. This leads one observer to believe that “mills are trying to stir up commotion which they do not even expect to take effect, and which will be forgotten by the time some activity restarts after summer.”
Others are not so sure. The hike attempt comes from mills with a large share of project activity and production of high-tensile grades. Their customer base is more willing to accept an increase for commodity grades, too, for orders of mixed qualities. The move would bring S355 grade plate close to €900/t, according to one buyer.
For many weeks, the price range was anywhere between €800 and €850, with offers differing widely between mills. The latest signals even indicated a softening, which is a normal trend during long periods of non-movement. Managers of inventories need to generate turnover of material and cash flow, one source explains. “The picture is not uniform. Some have dipped below €800. I have heard offers at €790, too,” he says.
